Full text of Commercial and Financial Chronicle : August 9, 1956, Vol. 184, No. 5558

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.iV af*!i.rl /' «+ir>£i)&"?4iXlM

ESTABLISHED 1839

UlNlvtRSITY
OF MICHIGAN

Reg. U. 8. Pat. Office

Volume 184

Number 5558

New York 7, N. Y.,

EDITORIAL

Thursday, August 9, 1956

Price 40 Cents

Quarterly Investment Company Survey

WALL STREET

The supporters of Governor Harriman for
Presidential nomination
by the Democratic Party

Funds' Policy Dominated

By DR. ANNE IIULSE

doing their best to have it generally believed
that their candidate is the "true heir" of Frank¬
lin Roosevelt and
Harry Truman, and thus de¬
serve the
support of the

Startling changes in Wall Street since the 'twenties,
stemming from legal, technical, and, primarily, the
broadening of the securities business which marked the
entry of i small buyers on a national scale, are recounted
by Professor Hiilse. Describes the development encour¬

great rank and file in

preference of the
The

moderate

New

York

Stevenson

Governor

said

embody the "true spirit" of the New Deal, which,
they assert, can not be said of his chief rival.
We do not intend at this

point,

for the Democratic

ties distribution with

nomination, but certain rather

talk

,
•

not

of which

measures

[rather

Governor

same

and

his

Wall

Administration.

than

questions.

Both

by whatever
It is not

Both,

Few

persons,

are, par

they

for

who

value

were

in the

middle

selling operations in

'twenties

stocks only by 53
funds, during
demonstrated in the following table:

mon

work today, his past
would be practically of

qualification for
y

among

securities

re-

;

known

matters

many

cases

NOW

porate securities

REGISTRATION

afforded

are

undertakings in

—

page

Total Sales

C-

equipment, tire, steel (selectively), machinery and in¬
equipment, and tobacco. Liquidation predomi¬
equipments, metals, railroads, and textiles.
Policy was mixed toward oils, papers,
utilities, mer¬
chandisers, electrical equipment, electronics, and foods.
Management Comment and Forecasts

;

Consistent with the conclusions derived from
analysis
of the factual
data, is the commentary from management.
Outspoken among the optimists i5 Cameron K.
Reed,

Continued

Underwriters, dealers and Investors in

HAnover 2-3700

TODAY'S

BANK
bond

Burnham

and

COBURNHAM

INVESTOR"

•

Dl 4-1400

Teletype: NY 1-708

120

New

T. L. Watson &Co.

County and

1832

Markets Maintained

Stock

CANADIAN

4VZ%

Debentures Due May

1965

Non-Callable

Payable

DEPARTMENT

Price

New

York

103%

Canada

to yield

BROAD

STREET

NEW YORK 4, N. Y.
COMPANY

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody

Dominion Securities

Co.

Grpokation

BRIDGEPORT

•

PERTH AMBOY

115 BROADWAY
NEW

YORK

1 NORTH LA SALLE ST.
CHICAGO

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

upon

request to

Unlisted Trading Dept.

IRA HAUPT&CO.
Members
and

MEMBERS NEW YORK STOCK EXCHANGE
.

Analysis
our

Teletype NY 1-2270

Doniger, Inc.

All

Canadian Exchanges At Regular Rates

Exchange

McGregor-

SECURITIES
Commission Orders Executed On

American

bank

$50,000

CANADIAN

Members

District Bonds

Chase Manhattan

Exchange

Montreal Metropolitan
Commission

New York Stock Exchange

Stock

BROADWAY, NEW YORK 5

To Dealers, Banks and Broker*

ESTABLISHED

York

the

34 offices from coast to coast

Net Active

State, Municipal,

DEPARTMENT

"'4yg;

ON REQUEST

Harris, Upilvm &CMembers

Bond Dept.

TELETYPE NY 1-2262

'.I

OF NEW YORK

Company

YORK ANO AMERICAN STOCK EXCHANGES

15 BROAD STREET/NEW YORK 5, N.Y.
CABLE:

-''

Housing Agency

BOND

LETTER

THE FIRST NATIONAL CITY BANK

MEMBERS NEW

DALLAS

ARE NOW AVAILABLE

ST.,N.Y.

FIRST

and y

Bonds and Notes

VIEW

department

30 BROAD

"POCKET GUIDE FOR

BURNHAM
MONTHLY

LATEST

THE

CORN EXCHANGE

page

State, Municipal

Public

BONDS

CHEMICAL

cor¬

of issues now registered with the SEC
"Securities in Registration" Section, starting on
page 32.

COPIES OF OUR
telephone:

complete picture

our

5.>'( 32

nated in farm

STATE AND MUNICIPAL

Securities

dustrial

Municipal

Industry, Groups attracting buyers included airlines,
aircraft manufacturing, building, chemicals
(selectively),
coal, container and glass, drug, life insurance, office

U. S. Government,

Stale and

are

$223,460,000
189,270,000

balance

com¬

quarter

—

Number of Funds buying on balance,—

g Number of Funds selling

day-to-day operating procedure
only to those carrying out the

Continued

underwriting but include literally hundreds

of technical

the

Total Purchases

:--yy
quite,!
is

with their portfolio's proportion

risk securities at
81.4%, practically unchanged from
the 81.2% at the beginning of the
quarter.
The aggregate buying and

they
brought about entirely by force

and potential

previous quarter; and
of

employee
or
underwriting firm

tive
rulings.
The
changes which
have taken place are not all apparent
to a person not actually
engaged in

Anne E. Hulse

) lessness of the past but to be continuously push-

DEALERS

cash and U. S. Government bonds
averaging 7.0%
of total net assets compared with 7.9% at the end
of the

minating in the Federal Securities
legislation
of
the
1933
and
1934
period and subsequent administra¬

satisfied with the reck¬

SECURITIES

net

of law and the reform movement cul¬

they talk
"spirit of the New Deal," but it would
that they believe that it is the essence of

page

generation

those, who are
aware
of
the changes, there
popular
misconception
that

excellence, New Dealers
be called,

retired

Even

economic and social

Continued

present

employment.
are

may

never

the

experience

quite clear what Governor Harriman

the New Deal to be

leading the lambs

V; to return to his

about the
appear

Cautious buying, conducted with great
selectivity and
interspersed with widespread expressions of bearish
sentiment, characterized investment company managers'
policy during the second quarter. Thus our Survey, as
detailed in the ensuing tables, shows that the
companies
analyzed ended the June quarter with their holdings of

experienced

member

and his followers do have in mind when
•

wolves

[Tables showing 2nd quarter portfolio changes and funds'
comparative cash positions appear on pages 21 and 22.\

slaughter."

those

even

fond of preaching just this

name

farm equipments, metals, rails, and textiles.

new

employed in the securities business, have any conception
of the great changes which have taken
place since 1925.
Still these changes are so marked that were
it possible

Indeed,
too,

Street
to

could be said of President Eisen-

| same general dogma about

Stevenson

ardent advocate and supporter.-

much the

ihower

about the

are

to buy on appreciable declines.
With great
selectivity, was buying directed to airlines, aircraft manu¬
facturing, life insurance, steels. Selling predominated in

underwriting houses;
exercised by the Stock

talk about the

Deal

Some

to economic and investment out¬

gamut from optimism to outright bearishness.
bullish on long-term prospects, with indicated

runs

intention

police power now
Exchange and the National Association of Securities
Dealers. Concludes, "no
longer may one even facetiously

are
suggested by this
"spirit of the New Deal," and it
seems worth while to
ponder the subject a little.
•What is this "spirit of the New Deal" about
which a good deal is
being said at this time?
It is hardly to be found in the substance of the
| programs
brought forward or supported.
It
;would be difficult to find
any of the major New
'

lessened participation-liability;

and virtual

any discussion of
demerits of the candidates

important considerations

•

look

forms of competition
confronting

possibly at

other point, to enter into

any

the relative merits

Managements' reaction

aging widespread public interest; improvement Of securi-

By Cautious Buying

Department of Economics, Hunter College, New York

'are

Illinois.

Copy

IliislrelSeeifll

•

New

111

Stock Exchangs

Exchanges

Broadway, N. Y. 6

WOrth 4-6000
Boston

York

other Principal

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronic1

(574)

''it.t'.

iM:

''v.

The

Brokers, Dealers only

For Banks,

Don't Let Dormant

sea

they to be regarded,

Research Dept.,

solving

of trading problems

through
of

work

wires

provide

Olin Oil & Gas Corporation

with

throw

off

*•

Member

Stock

120 Broadway,

has been

New York 5

outstandingly

Teletype NY 1-40

successful

BOSTON

•

CHICAGO

•

SAN FRANCISCO

■

and

oil

Probate Wires to Principal Cities '

gas

at;

reserves
very

moderate

cost

and

some

and the rewards to
holders should .be very

handsome.

RIGHTS & SCRlP
Since 1917

'1
<•

■

■'

•■■■S3

MCDonnell&QO. 1
New

York

American

—^

Stock Exchange
Stock Exchange

having been
Novem-

company,

very young

outgr(^th Co.
of
Gas

the old Interstate Natural

I°rme<*.

?Aoc

1926, and it

Oil of New Jersey lh

assets of- Interstate
*§§, that Olin made its start.
In June of 1953, Ulin industries,
m
m
then owner of 7% of Interstat
the

was

120

BROADWAY, NEW YORK 5

RprhliSanCoirumb?an
Republics, Columbian

■

TEL. REctor 2-781S

American

Carbon, and Rockefeller interests,

approximately

82%

of; t

standing common stock

Trading Interest in

lu
iSw
? ol
^UK1CuSi°C^kholderis and

5?
®

«i

quired the balance of 11%, so Olin

American Furniture
,

innS
100%

Bassett Furniture Industries

Camp Manufacturing

mill,nn

*4ft

Co.

due

notes

Lynchburg, Va.
TWX

oil
ana
oil and

Jan*.

the

newly/ acquired
should be
snouia
ue

So
Industries

separate entity.

as a

1954, Olin

14,

off

soun

the

deter-

and

properties
pioperues

gas
gas

operated
LY

1972.

businesses

that

mined

In¬

4%%

Olin
then engaged in a
men engagea m

was

number of

own

stockholders

stocko?

its

common

thenewOHn

Oil & Gas Corporation. The new
established as its odjcc
esiaoiisnea as us obiec—
tive the development or acquisi-

comDanv
company

Trading Markets

tion
won

Norbute Corp.

North American Coal
Rare Metals

Riverside Cement B

Seaboard Drug

Field

oil
on

of
oi

and
ana

gas
gas

and

wells

oil

Coffee

and

wj1icj1

made in

discoveries were

Other

Oklahoma

Eastern

Northern

and

Louisiana.
At

Enfermer

Coffee

and

from
Iioin

its

with the

L. Hunt

inter-

ery

nronerpi apex

ties and

pipeline operations.
Olin Industries, Interstate
had. annual

production,

purchase

gas

the

and

trans-

^reene<miGompanu

to industrial

tributing

and to dis¬

concerns

companies

The
ine

ations

STREET

NEW YORK 5, N. Y.

area

munic¬

and

siana

in
in

sections

and

which
wnicn

conducted

were

certain

WALL

Refined

—

Branches

■

Broadway,N.Y.6 COrtiandt7-5680

rise

over

There

is,
ex-

>V"-':

first

12%
up.

goal

sales

well

may

peak levels

as compared

profit.

The geol-

longer

tnan

ago

DIVIDENDS

GALORE

1939,

ogy of the area is encouraging and Ward's sales were $475 million
there ig even some evidence that .and Sears Roebuck's $617 million.
the field
a

far discovered is

over

deep-seated salt dome.During 1955, the company

Afcer the end

quired

all

the

ac-

that it

the

assets

Hardwood

Delta

Louisiana

ture seemed

and

Lum-

ber Company, which included $1.1
miHion Qf net current assets, for
tup
the

nf arTHinP1
tn
inof adding to its in-

nnrnnco

purpose

available

come

olm

$180 000

royalty

income

an-

crossed

even

continental

national

our

borders

plant

its stores in Latin America and to

collaborate

with

Australians.
Qpnr;

ooloc

Canadians
the

end

and

lb5o,

Killing

n;aro

Nothing

Sears sales were $3.a billion,

exploration.

for

avanaoie mr expiorauou.
wllJ receive
approximately

•

the war, the fuglamorous to Sears

understanding

what

ha-

y"06/.?1?' %ng of ,^hat .has

L°.

n^lhTandh
^v4vSTth^t ^udi ^hWned and why such coniidJ1"3117 and.111t \s t)elieved tnat sucn enCe in the future is warranted.

SnallSdkS
proximate ° i26 000
*
DAimnitiji
j.iu,uuu
a v.
o \j ±.
of
-

a c r e s

pr0mising

^hich

oil and gas property

Olin

will

have
•

±.

one-half

a,.

■

•,

5^' business of by Olin-Mathieson
Louisiana Delta is
being operated
Chemiral

fee

comp'any

The

Chairman

Finance

nrofit-

and

a tee ancl protlt
has

of the Board

Committee.

Hanes is
and

of the

Hanes'

Mr.

than the

Monday Issue

^eviousmanagement of- Moncgomery Ward, lighting again 30's,
the
economic campaign of ine
chennnrdnd ihp finanrial resources

sdepderdecl me iinancial
of

the

company

cfnnnpd

all

into

pvnpn<!inn

u a n k. s

hPlH

tones to minimums, and
rpad;PH

ride

nut

for

^v®»otnerwise
r.n

depression

Those, who disagreed left,
were:

dividends

declared

and

;were asked to leave, tne company
Som!e of the results

uf the: ^Chronicle''

,nvnn

\u ? ??L
?
that did not come.

excellent

john w.

helpful

, A iittle background is essential

Ward

when

payable

coverage

organizati°n 3m®fale ,was "shot";
sales
declined while those of

com-

Mississippi,

re-

oner
oper-

comprised
Loui-?

from

the

and

ment

cessful

prominent

well known and such
mergers

Chemical and

sue-

Mathieson

Olin

career

Industries

are

n-tit-rc

proxy

cr.QVOr..

battle

recent ac-

finally

stirred

tilings enough to compel a change

in top management.
•

Whilo

witnesses of his

fronting the

■

Prospect thenMontconleaders of

new

tivlties- Mr. Hanes directs the gomery Ward was something less
financial affairs of the company, than glowing, there was no deny-

Harold F. Moses, as President, di- jog certain cheerful aspects. One
Moses, prior to his ernment bonds. Another was that
association with Olin Oil & Gas, there was plenty of room for ini¬

border

reserves

including New

of gas,

Monroe
Monroe,

owned

dition to
oitLov

Exports—Imports—-Futures
miles
and
DIgby 4-2727

pected.
raise

much

each million cubic feet.

Or-

Substan-

principally in

Louisiana
Louisiana

Field
tieid,

by Interstate, in ad-

which

wrhrUiv

oT
of

Interstate owned
nr

pipelines

had

been Vice-President

rector

in charge

in
in

i a**

Louisiana

fnr

together

Di-

rartpr

oil

provement.

It began forthwith.

+^S n° rusb,catch up
Wlth lost tllTie by settlnS UP flew

research tor the Garter Oil st0res, for
ComPany since 1935. Carter Oil is personnel
Pany (New Jersey). For 10 years
with

Garter

Over-the-Counter

Quotation Services
for 42 Years

Ward had neither the
nor

subsidiary of Standard Oil Com- department.

with

stations and field gas

gathering systems.

and

exploration

of
thp

association

Mississippi,

compressor

ininfiv

jSCToS&h

Pany*

rMparrh

1956,

chalked

was

1897

—

Brokers & investment Bankers

five

rects the operations of the com-

the

Liquid

1955

111

Tokyo

the

first

months

;•

Co., Ltd.

Established

Office

'a do ve.

1954;

siana

were
—

and
its
its

Eastern

leans and Baton Rouge.

Raw

L. Bartlett

than $80

million
Ueorge

rose

Gulf Coast to the northern Loui-

tial

SUGAR

year,

this business, and the new poiicies assure ; better. margins , of

long

sale
saie.

applied. In its
1955

financial and corporate manage-

ipalities for distribution

LAMB0RN & CO., Inc.

Home

and from it can be extracted probably 30 barrels of distillate for

sold at wholesale under contracts

ESTABLISHED 1929

Tel. HAnover 2-4050

spent

-Securities

were

sales

write

10 and 13 thou- open in new areas.
The growth
The gas is "wet" 'factor is practically unlimited in

between the

sand foot level.

portation of natural gas which it

37 Wall St., N. Y.

erally

information

Yamaichi V

manage¬

funds

;

■

at Lake Enfermer proved sub- - with a probable billion in 1956.
reserves
of both oil and "Then there will be new stores to

cash_ earnings of approximately^$4 management.
million.
It-was
in

years

gtantial

Before its purchase by

engaged

current

Call

ment, and lib-,

ests of DalMs' Texas' The discov" ~^-2 bilIion in »»

reserves

nroducing
piuaucing

new
.

Bay> the compan^ is participating
50_5o

t h

practically

appear to

For

spurted'-

stimulants

however,

Lake

years

when

1955.

ieseives,interest iP the minerals. The lumfinanced by the available cash in- h.r hnsirips. „f T„lWftna nelta is
come

remaining

be stirring due
improved Japanese economy.

now

to
some

Bay

discovered

were

offices

stationary levels for three

lain tallow for

Louisiana,

Southern

: ;

branch

our

STOCKS
after

this
company
had

"'The most significant discoveries
ma(je by the company were in the ;
Enfermer

JAPANESE

sense,

;

gas

Company.

NY 1-1557

Mobile, Ala.

situation of which I
am
aware
is so intriguing and
profit-promising as that which
exists in Montgomery Ward. In a

wells, of which 328
acquired from the old Inter¬

were

HAnover 2-0700

Stock

other

nron"

Prudential

of America

serially to

Industries
industries

STRADER, TAYLOR ft CO., Inc.

th,s

the

from

surance

^frstate Natural

mately $40 million for this prop
erty of which it .borrowed $32
million

Commonwealth Natural Gas
Life Insurance Co. of Va-

eS'

owner-of

Gas. Olin Industries paid approxiMafo,v

\"V'-

roe

incorporated only since
ber,1953. It is an
™as

Members

Montgomery Ward

substantial inter¬

17, gas
wells in addition to the 357 Mon¬
in

state

Gas, , as such, is, a-

Oil

Olin

had

est

•

years

patient

Specialists in

owned
Alexander

Todd

over

period

Exchange

Exchange
and-other leading Exchanges *

full; years

two

Stock 'Exchange

19 Hector St., New York 6, N. Y.
t

Direct wires

York

New

Members

Texas, Alabama and Florida. Dur¬
ing the period 33% of the wild- /
cats and 83% of the pool wells drilled produced either oil or gas. ?
At Dec. 31, 1955, the corporation ;

accumulating

PHILADELPHIA

WOrth 4-2300 *

first

the

York

New Orleans, La.- Birmingham, Ala.

I Partner, Thomson & McKinnon,
New York City'

pany

Members Hero

operation —1954 and 1955 —the
corporation
expended 'approximately $6.6 million oh exploratory
activity and the acquisition of
leases
in
Louisiana,
Arkansas,
Mississippi,
Illinois,
Oklahoma,

Steiner,Rouse&Co!

t GEORGE LESLIE BARTLETT ;

made out of the

money

date, the com¬

Exchange

Thomson &
York
City.

1 Membern American Stock

pipeline to the exploration and
development of new gas and oil

re¬

serves.

>7^ *

1920

Established
Associate
American

(Page 2)

words,the
Olin Oil & Gas dedicated
all of

gas

Bartlett, Partner,
McKinnon,
New

new

Bought—S old—Quoted

City. (Page 2)

Montgomery Ward—George Leslie

I™othl~r

develop oil
and

New York
"
and

debt and for the purpose of de-'

being used to

Corporation

Louisiana Securities

Corporation—

Gas

and

Alexander, Research Dept.,
Auehineloss, Parker & Reapath,

set out to use the cash
Interstate > to reduce its

flow

Interstate, * the

pacxty

company

dividend, but
its very sub-;
stqntial c ash

New Yoili Hanseatic

Alabama &

Selections

Todd

nucleus

its

Oil

Olim

■'

Week's

This

Their

with the substantial earning xa

sfuafion1At'pre^nt1ifshows™*
small net Earnings and p"ys no

dependable service.

this

With

Olin Oil & Gas is a most inter-

are

you

New York Citv
,

nationwide net¬

private

prepared
fast and

our

Auehineloss, Parker &

Tfodnath
p
'

these kinds

of experts

group

are not intended to be, nor
offer to sell the securities discussed.)

as an

TODD ALEXANDER

why not call us at "HanWe specialize in

different

V-.'

Forum Participants and

(The articles contained in this forum
are

sluggish markets exasper-

tic"?

■-and

week,

participate and give their reasons for favoring a particular securityr

Try "HANSEATIC"
ate you,

Thursday, August 9,1956

Vi-

advisory field from all sections of the country

in the investment and
*

When

Security I Like Best

A continuous forum in which, each

Markets Disturb You

.'t,

a
store-planning
Instead, emphasis

National Quotation Bureau

was put on better merchandise
and lmProved

merchandising

Incorporated

association with Garter the existing stores. A staff has
r* Moses was m charge of since been created for new-store-

Established. 1913

0l1,

Continued

on page

Continued

on page

46 Front Street
Chicago

New York 4,
ban

N.Y.

francisoo

< *.

Volume 184

Number 5558

...

The Commercial and Financial
Chronicle

(575)

United States Foreign
Economic Policy

INDEX

Assistant Secretary of State

Mr. Bowie maintains
foreign relations must be conducted

;

integrated whole, witb the political, military, and economic
elements interdependent. Asserts free nations
must create bigh

level

i *"

not

catalog

describe all the various elements
;6r instruments of the
foreign economic policy of the United States,
Instead

main purpose

will. be -to

an-

al.yze

the

re-

lation

our

foreign
nomic
to

eco-

policy

our

all

over-

national

objectives and
policies. That
to

seems.,

;the most
ful

contribu-

tion
Robert

use-

can

,3 s

topic seems to me to be justified
for another reason. In some re¬

the

spects,

term

"foreign
eco¬
nomic policy" is a misleading one.
It suggests that economic policy is
separable or independent. Actu¬
ally foreign
relations
must
be
conducted, within the limits of
human abilities, as an integrated
whole. Every aspect —
political,
military, or economic—is inter¬
dependent with every other as¬
All

pect.

hand

hand,

should, if foreign policy is to be
in achieving national
objectives. Much of what I have
successful

between

xu.

foreign

policy and other parts of foreign

I These intimate
economic,

ties

political

among

and

the

dent when
and

examine

the

na-

unique

United States
interests in the world economy.

tions.

pie,

;;

outbreak

and services.

twice

that

the

only 6%

United

40%

free

the

States

the

of'

•

na-

peo-

the

Air

Walter E.

responsibilities

the

It has

many'

of-

come

interests

unprecedented

history.

to'

it-

Spahr Recommends

Transport

Looks

Investment

LITHIUM CORP.

STRATEGIC

and

interest
in

great

Sound Money

Plank for

Both
14

NAM's Platform for Peace and
Prosperity.

J.F.Reilly&Co., Inc.

—>7 31

growth

are

degree,

with

iWi

some

We.buy j5% of the worlds 20%
1mports
and
account
for
look

Despite
we

if.ulate ourselves
3.

NSTA Notes

passage

Our Reporter
Our

Reporter's

Governments-..

more dependent on world prog-

HA 2-0270

Report.

40 Exchange PI., N.Y.
Teletype NY 1-1825 & 1-4844
-

This is only a part-of our-con- :
World War I, the United States cern, however. The free world's1
Was not generally looked on as a economic base is vitally important •
loading nation and was preoccu- to its ability to provide for the r
tpied with its own .development, common defense. In our demo-...
In foreign policy; its perspective cra*ic countries, the claims of dewas limited; its economic
policies fense 7 constantly
compete
with
IWere based almost entirely on do- those
of human welfare. -The'*
Wic needs arid fiterest; In the

Singer, Bean
&Mackie, inc.

Observations—A. Wilfred May

of time

350 Unlisted Stocks

News About Banks and Bankers

1™^$ JZ*?

over

—

naH?u*v* decjine abroad.

probability, the

not

5ii
In all

Funds

our con- "

could

Trading Markets

Mutual

even from the

y "ecpP0!??lc

Firm
8

Indications of Current Business
Activity

sources

ttmodities^ike "copeconomy,

___144

From Washington Ahead of the
News—Carlisle Bargeron

Increas-l.

foreign

Einzig: "Sterling and Oil Prospects And the Suez Canal Crisis" 13

,.,/v^ia'*

Teletype NY 1-4643

Cover

Stocks

Dealer-Broker Investment Recommendations

elsewhere.

of the worlds exports.

Insurance

Coming Events in the Investment Field...

economic

up,

and

(Editorial)

Business Man's Bookshelf

part,

for

growth
^

Bank

this
position
nation.
Our

bound

Wrt

with

steady

our

trading

Broadway, New York

DIgby 4-4970

Regular Features

output, of

from

prospects

the

our

services.

flows

MATERIALS

•

As We See It

field, the U. S.-

nations

growth of their and

in civ

[

common

free

own

HAILE MINES

Counsel

Better Fourth Quarter Business
Prospects Indicated, According
f to First National City Bank "Letter"
1
17

in v

In the economic

HYCON MFG.

example, it has,

■

Capitalism—Dorothy Takosh—12

Parties

years

defense

interest

registrar

V-V,

undertaken commitments for. col-' v

goods

incorporation,

certificate,

Obsolete Securities
Dept.

Our output is almost 7
the' United King- ;

the

company, class

Ivf.

i—..™.

The Public Relations
Counsel
K—Edward L. Bernays

goods*

shares with other members of the!
free world.
For

discharge

other

the

Cobleigh__.;__

Stock-Market—-G.

Banking and American

of World War-,
jj, the United States has
sought to

its

of the

State

ob-

given:

/^Clinton Davidson,!, Jr._

produces-•

world's

lective

name

that

J 99 WALL
STREET, NEW YORK
6 ^
Telephone: WHitehall 4-6551

„

Military Market Opportunities for Commercial

dom, France^ West Germany, and7
Italy combined."
"
7
Since

regarding

request

transfer agent.

information

—

among

With

the

about

( The recognition of those interdeveloped gradually. Before

ests

role

scope

date
and

Policies—

inquiries

stocks,

stock,

military

aspects of foreign policy are evi-

Exact

Suez Crisis; Role of
political; mili-Consumption-, and the Pill-Taking Trend
tary and economic—were rapidly:':, :—Roger Wv-Babson__.i—._
11
adapted to its changed position in.
ibe world.
-/
..;
* • ♦, Government and the Mortgage Business—Miles L, Colean—«« 12
v Today, the United States has a

tinental

ture

policies

per and iron ore.

Prosperous Outlook Iudicated->~Hon.
Sinclair Weeks_—

•

'iS
economic

pvncy.
-

e*kn policy until the

a p" recognize

proach to the

^ar*^iait Nickel—IraTJ.

^orfh War II. From then on,"its

its special position.

Bowie

■

77v.< The Doctor in the

not reflected in United States for-",

foreign

R. Bowie

AMD COMPANY

in general this shift in
status was -'

will

Policy—Hon. Robert

making

solete

following

Turnpike Bonds—Robert N.
Tuller.4

Odr Debt Problem and
Economic Growth.—Paul W. MOCrackeii-,

r'C' p-'-

paper

Cover :v

LatinrAmerican Monetary and Exchange
5\,__LFeijpe pazos'' _r_-__'_____L___
I

;
,

•

economic

developed countries.. States Europeiwill need closer economic
integration : with' gradual adoption of^ a common market. '
Stretiu need for imaginative, long-term efforts
by govern-- ■
ments and private: investors and institutions-for
stimulating- 7
under-developed countries.
.\
- V

■

Cover

Thoughts

activity domestically, promote trader and V':
monetary policies that gain advantages of international
specialization, and avoidr critical shortages of raw materials ;in less- *
{•

Page

—

United States Foreign
Economic

LicHnnsiEin

B. S.

Articles and News...

Funds' Policy Dominated
by Cautious Buying in Second!
Quarter—

Policy Planning

—

> 3

Wall Street:
Yesterday and Today—Anne Hulse_>___i

By ROBERT R. BOWIE*

Direct Wires

•

Public

Utility

Securities

Railroad Securities

Philadelphia

_~1

...

Chicago

Los Angeles

—

Securities Now in

decades

power

after

1914,

the

changed rapidly
own, progress,

of the other

tary

the

relative

United
as

States

result of its

and the weakening

major nations.

But

technology

aR of

our

reflected

are

national

budgets.

Securities Salesman's
The Market

and

..The'Security

Corner.

Gulf

like*'Best.-:

1-L—.1

shall take the

The State of Trade and Industry

very

real risk of having neither wel-

Washington and-

fare

nor

freedom.

And

arises

♦An address by Mr. Bowie before the
v,.:r.*
*;
Ninth
International
Banking
Summer. OUr
Common
interest that
School, Rutgers University, New Bruns-'
wick, N. J., July 9, 1956.
vJOYltlYlUed OTl
.

♦See article "Funds'

■,

on
oa

cover

page.

•

Revlon*

Policy Dominated by Cautious Buying"
/

General
Published

For many years we.
have specialized in

The

D D C C f D
• » ^ ■ L II

DTI] CTflPKC
H L U 0 I UUAO

•

BROAD

TELEPHONE HAnover 2-4300

TELETYPE N. Y. 1-5

•

Boston

Nashville

•

Chicago

Schenectady

•

Glens Falls

Worcester

and

COMPANY,
New

2-9570

York
to

Reentered

statistical

records,

city

issue

—

Subscriptions
in
United
States,
U.
Possessions,
Territories
and
Members

President

Union,

Dominion

Canada,

Other

quotation

bank

Chicago

Offices:

111.

135

clearings,

(Telephone

STate

Salle

St.,

2-0613);

and

request

rate

per

$63.00
per

year;

per

made

BROADWAY, NEW YORK 6

year.

WHitehall 3-3960

Teletype NY 1-4040 & 4041
—

Monthly,

Direct

Wires to

(Foreign postage extra.)

account

exchange,

the

fluctuations In
remittances for for¬

eign subscriptions and advertisements must
be

INCORPORATED

year.

Record

IS V. FRANKEL & CO.

Publications

Quotation

$40.00 per year.
Note—On

$60.00

$67.00

Other

etc.).
South

Countries,

Bank

the
Other

*Prospectus

Febru¬

Subscription Rates

market

news,

matter

25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

Pan-American

corporation

and

second-class

Capsule*

Eng¬

9576

SEIBERT,

ary

Publishers

SEIBERT, Editor & Publisher
DANA

E.
,

Patent Office

Thursday, Aug. 9, 1956

state
•

Drapers' Gardens, London,
land, c/o Edwards & Smith.

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete

Albany

CHRONICLE

DANA

Place,

REctor

WILLIAM

Exchange

ST., NEW YORK 4, N. Y.

Park

HERBERT

Weekly

COMMERCIAL

Reg. U. S.

WILLIAM

Members New York Stock

Twice

FINANCIAL

Spencer Trask & Co*

Sulphur j-

fhe

pQ.Q€ 26

Pan American

—

Sulphur

rent of adequate military estab-

lishments,

Murphy Corp,*

You—By Wallace Streete

Yet

fail to maintain the deter-,-

;

Prospective^Security Offerings_________

Registration_x.____i___________.___

New

York

funds.

PHILADELPHIA

DENYER

SALT LAKE CITY

The Commercial and Financial Chronicle
4

Thoughts

N. Tuller

Robert

possible inclusion of existing
Turnpikes in the INTERSTATE
SYSTEM. This is: very important
the

Turnpike Bonds

ROBERT N. TULLER

r.'.-V *

Tuller reflects

be admitted and

upon

the price and operating results

the

met the

perience, especially bitter expieis a fool. The present is
certainly a time for sober reflecrience,
t i

o n

part
t urn

the

of the
pike

business

and less

volatile

d holder.

The

dealers

nature of water and electric reve¬

e r s

•

past

few

months. These

declines
run

Kansas, Texas, Indiana and Massachusetts.
While the municipal
bond market. itself, has suffered

some

major price declines in the

same

period, it is;-probable that

the

major market declines in the
1 turnpikes are a problem of and

to themselves. What can we learn

the

from

price

and operating re-

suits of the last 18 months.
^

Lesson number one should be

the realization that any new turn-

j pike in the construction stage is
^speculative and has not yet earned

1 investment

status.- Second

j should be that, granting the
lise of lesson

[should

[price

one,

lesson

2,70s,

for a

with

premr

new

There

ballyhoo
of unusual
short-term revenue changes either
Up or down,

fact

that

the

vast

tax-

payjng public is the gainer. Certajniy the great majority of the
iurnpike mileage built was congtructed
because
of
a
pressing

need. _The

have

eriginee.rs. may

of cost and traffic,
but they did not err in the main
in
locating
the
new
avenues
where they would relieve
the
greatest congestion and provide
made

There

are

two other

blessings

the

pikes

know now

in[

the arguments at

construction
or

for the

the

charges 1.48

pay

for the Turnpikes. The traf¬
on
the Turnpikes today does

fic

same

that these are the roads most
appreciated. This be¬

ing

so,

every

fringe

turn-

between the Federal program

that

Financial

and

their toll

States and

the

roads should be expected and

run.

and

;de-

difficulties

the-

the

opera¬

greatest

roads
conve¬

facility is really con¬

4--r'444-"''.

.;-V-44'

In the field of employment during the week ended July 28,
the United States Department of Labor reported that first claims
for unemployment insurance dropped 27,500 to a total of 212,400.
The decline, it stated, was attributed to "seasonal improve¬

ments" in apparel, textile and other industries as well as a further

slackening in new claims due to plant closings for vacation.
However, initial claims for. unemployment insurance were
still running ahead of the like week of 1955, when 197,700 were
filed.

further

ina

Mich.

—

Myron

re-

present turn-

Fordon, Aidinger & Co., Penob¬

for

they

scot

Building,

members

New York and Detroit

changes. 4

- •••

28,195,000 auto workers had not been recalled since being laid off
at the first of the year. This was the same total as
reported for
the preceding week.
State reports, the Department pointed out,
showed recalls of 4,000 workers matched layoffs during the latest
week.
•
'
445
.
In the steel

face

strike.

industry this week, steel producers and consumers
long, painful climb back to where they were before the
As the mills straggled back into production, the scramble

for steel resembled

a free-for-all with no holds
barred, accord¬
ing to "The Iron Age," national metalworking weekly.
A post-strike "Iron Age" .survey shows that
metalworking
plants' squeezed Thifpugh the sirike itself iri fair shape*, But the
worst is yet to come; With inventories 'depleted and
futurq deliv¬
eries uncertain, many consumers* were- confronted with the
pros¬

pect of production cutbacks.
'
;'J
*
The strike cost 11 to 12 million ingot tons of production. It
will take at least three weeks before production is back to
pre-,
strike levels and furnace roof cave-ins 2hd deferred maintenance
.

will plague the

industry for months.
and freight car building, heavy consumers of
plates and structurals, were the hardest hit. Scores of important'
Construction

highway and building projects have been delayed. More will suffer
the

same

fate before steel

be delivered.

can

Freight car construe-to near-zero unless emergency*
be made, this trade authority declares.
To make matters worse, another
major consumer, automotive
industry, is coming to life. An expected sales pickup with intro¬
duction of new models is bringing the car makers into the steeltion

plants

some

shipments

will

cut

can

market with both feet.

Unexpected holes are showing up in Detroit
some divisions of the major producers to
borrow steel from sister plants. Auto parts makers also will be
in
trouble before steel pipelines are running full
again, asserts "The

inventories, forcing

But

Smith has become connected with

pike 'bondholders,

and gas

(Special to The Financial Chhonicle)

DETROIT,

construction,

Sections 113 and 114 should be

•

The government also reported a dip of 40,200 in total insured
unemployment during the week ended July 38 to 1,219,700, com¬
pared with 1,104,600 for the comparable week last year. "
'
Seasonal hiring in the food processing and apparel industries
and the reopening of vacation-closed plants helped
cause the
decline, the Department added.
'
At the same time, it observed that as of the week ended July
.

Strike

With Fordon, Aidinger

best mechanism of im-

our

mediate

Iron Age."

Highway Act of 1956 should become

ended

level of the week preceding, but

bility. Secondly, the Federal-Aid

constructive for present turnpikes.

*. - ...

possible cooperation

trary to public policy in the long

important "calculation
.

person

needed and

nience and

stopped,

illustrate how this Act might be

who will

manded.

cover

Federal program.

routes of doubtful feasi-

preceding quired reading for

as to whether X Turn-

f pike would

ments have slowed, if not

their

[formation meetings

The

going

say

■

for the nation as a whole in the
Wednesday of last week was sustained at the
notwithstanding this, it showed a
rathei* sharp contraction below that of the like period a year ago.
Slight declines were reported in the automotive, coal and food
processing industries. While initial claims for unemployment in¬
surance fell 7%, they exceeded those of last year by 9%.
Fewer
layoffs occurred in the apparel and textile industries.
period

were

billions

for.

pay

pikes

errors

the largest public service.

3.30s,

turnpike is anything but

|bond sales

If the major Turn¬
not in existence or
being constructed, it is a safe as¬
sumption that the first monies of
the
Federal program
would be

and

largely to duplicate tneir
Now, for the more positive side. •facility.
Don't forget that it is
if the bondholders did pay too John
Q. Public travelling tax¬
much for their given instruments,
payer who is getting up the $33,

with

ian exact science. It is amusing to

-1.54.

meaningful

elimination

influences.

for

place

3.10s, 314s,

murder

[remember

that-

learned

being what

risks

tional

that forecasting the traffic results
a'

has

Waters

Chicago

an investment well. The first is the fact that the
speculative bond, Fact traffic and operational disappoint- providing

27/ss, 3s,

Turnpike bonds as a class are notto be compared with Dewaps or

not pay

3%s, and 314s. Also,
on

with

the bondholder

is, that borrowing authorities got
away

done

seasonal

Illinois, Ohio, Florida, New York,
?

for

periods

TuJIer

5 to

points in the toll obligations of

of 1958..

bondholder can
price wounds with some '

are

revenues

should
N.

Robt.

have

from

some

just yet. 4 The
they were and.
necessary
for are, he knows he paid too much;coverage,
how current revenues but he did provide the money for compare with necessary revenues what in
the main are the first
and how such revenues compare roads the
travelling ' public de-with
engineers' estimates. This mands and wculd willingly build
net

occurred

generally
4 the

evidenced

consolation.

always
received
accurate
and
meaningful reporting of operating
results. He should be told what

changes which
have

determination

Turnpike

his

lick

holder

painfully and
acutely familiar with the
drastic
price

should

The

projects. The turnpike bond¬
is entitled I to and has not

nue

all

a r e

report to
early in 1958 to aid

Congress

form in the first Congress

sumed. It is far removed from the

Production

industrial production

Total

'3;

the (abQY^». P* •
political poetry so currently pre¬
vailing, tnat his bonds are going
to be paid off in a hurry from
Federal
largess; but the intent
of Congress to be fair in this mat¬

predictable than first as¬

o n

and bondhold-

area.

deduce from,

ter

Industry

policy with respect to reimburse¬
ment for highways, toll or free,
which are on the INTERSTATE
SYSTEM. No bondholder should

We have learned that the nature

the

Price Index

Auto

Business Failures

turnpikes
major traffic problem of

the Congress

the charges at least 1-01, for a
Turnpike is in trouble at .99
coverage if there are no reserves

Retail Trade'f

of the

retary of Commerce to
the

whether it surely would cover

was

Carloadings

Commodity Price Index
Food

integrated

Section 114 calls upon the Sec¬

Federal largess.

bond retirement from
He who does not learn from ex-

SYSTEM."

many

their State

from high price
paid by bondholders; (4) engineers did not err in road loca¬
tion; (5) doubtful turnpike construction has been slowed, if
not stopped;
and (6) Sections 113-114 of 1956 Federal
Highway Act fairly allows inclusion—and reimbursement—of
turnpikes in Interstate Systems while not providing accelerated

that

fact

results should be given

accurate operating

development of

INTERSTATE

bondholder; (3) tax-paying public benefit

and

Production'

Electric Output

State of Trade

turnpikes in the INTER¬
SYSTEM "will promote

some

STATE

Steel

The:i*

financially, and it seems logical to
assume
that
the
Secretary
of
Commerce will find that inclusion

Co., New York City

of
turnpikes in past 18 months, and cites following lessons
and blessings learned: (1) turnpikes in construction stage
are in speculative and not investment category, and should be
priced acordingly; (2) forecasting unpredictability should
Mr.

.Thursday, August 9, 1956

makes provision for

Section. 113

(576)

the

Stock Ex¬

losses

posed a problem also for the fast-stepping oil
industry. Small independent drillers were in worst shape.
of the large companies are
holding off on drilling starts
fields until the supply outlook becomes more certain. - -

some

The relative abundance of
could lead to
;,

line

false

sense

Meanwhile, steel
with

mills.

average

some

steel

products, notably sheets,

of security.

poised to raise their own prices in
of $8.50 per ton announced by the

users are

increases

There will be few, if any, exceptions.

Only the stiffest of
competition will foj*ce, fabricators to hold the lfne on their own
prices, concludes this trade publication.
In the automotive industry last
week, a dip in passenger car
production found Lincoln, Nash and Hudson joining Packard in
•

For Broker-Dealers

Only

shutdowns for

Seatrain Lines, Inc.

Expansion Planned

At Annual Meeting on May 15th,
authority was given to Company officials to
contract
for the building of "ONE OR MORE VESSELS."
It was announced
that total tax refund, plus
interest, to be received from the Government will
~

approximate $1,500,000.

Company

operates

of which carries

six

100

about $1.

specially

loaded

freight

INCOME,
from

the

ships,

Texas;

SEATRAINS,

each

Edgewater, N. J., Savannah,
the latter servicing the rapidly

period 1947-1955 the Company has carried down to NET
charges and taxes, an average of approximately 19 CENTS
GROSS DOLLAR, a RATIO not attained in
many lines of
industry.
year

after

Able and aggressive
management—excellent balance
an

called

between

cars,

„Ga., New Orleans, La., and Texas City,
growing Gulf Coast trade.
During the nine

share of stock outstanding. V

per

constructed

sheet—a

dividend payer—

outstanding GROWTH SITUATION.
.

BOUGHT

Report

changeovers, thus concentrating the indus¬

car

preced¬

ing week and 140,778 in the same week of last year.
The statistical agency said that the shutdown list
will extendto Chrysler Division this week,
enveloping all of Chrysler Corp.
by Aug. 22 and Ford by the month-end. It added that
resumption
in most cases will come without undue
delay.
Closing down for changeover on Tuesday July 31 were both
Lincoln and Mercury assembly at the
Wayne, MichV, plant. How¬
ever, 1957 Lincoln pilot model production is expected
by Aug. 13.>
Meantime, Nash and Hudson output in Wisconsin ended on
Friday
last, with resumption scheduled shortly after the body plant starts'
up Aug. 20.
"•
7:4 7v44■-4/ --4.
,

For Packard, ending its fifth week of shutdown

Request

uncertain, according to "Ward's.'
industry swing into changeover finds
output to date in 1956 running 27% behind com¬
parable 1955, with truck production lagging by 10%.
*
said that the

Steel Output Set at 52.4% of

(Established

Phone

DIgby 9-3220

labor agreement in the steel industry will £
sharply upward, but it promises stability in yearsi
ahead for the metalworking industry, "Steel".
magazine reported^
on Monday of the current week.

jolt

Teletype NY 1-2312
-

Capacity

In Post-Strike Week
The

1931)

Broadway, New York 5

Friday of *

car

J.W. Gould &> C
120

the past week resumption time is

United States

SOLD

area.

"Ward's Automotive Reports", counted United States
passenger
output at 110,168 units compared with 111,247 in the

"Ward's"

model

try's layoffs heaviest in the Detroit

three-year

prices

v* /'

v4;

...

Continued.

Volume 184

Number 5558

The Commercial and Financial
Chronicle

...

(577)

small and inconsequential.
Inflow :of -foreign
capital,both

very

Latin-American Monetary
And

Banking
In

By FELIPE PAZOS*

Senor

Pazos, while noting variations among the 20 Republics
comprising Latin America in per capita income and economic
development as well as literacy, sanitation, and urbanization,

pansion to

ine

name

Republics

sphere

Latin

America

the

Western

colonized

the

statement. about

Hemi-

Xvll

made

and

Centu-

toial

tion of around
175

i 11 i

vidual

•

on.

with

(Brazil).

features

lose

large

which

ourselves

mass

Latin

square

have

American

are
nat"raUy ^-comnanied
corresponding differences in
literacy
sanitation, urbanization
and development of the
monetary
,

with

nations

establish

already beginning

heavv

industries,

countries at
t

other

little

with

and

higher

this

economic

diversity

structure

development,

and

International

not-easy- to

payments
tor

strains

met

have

mainly

cation

The

and

rates,

defined

their

simplify

eventual elimination,

the

effects

TABLE

well

of monetary

use

cushion
\

toward

balance

disequilibria
disequilibna

Latin

Of
.

has-been

Wholesale Prices

Cuba

Living

♦Exchange Rate

-104

Ecuador

;;l!'"" Costa

obviously due to the

exerted

Most of the countries whose

J ,119 '

'
;

without trying to

expansionary

budgetary
straints

—

credit. This

—

'. **■

••.'

-l?-' A-': .'

100

159

—

>•

128-155

112-154

194

quoted

*•

■

Statistics,

Varying
have

reduction

the

during

seven,

In the past

Chase

National

With Television Shares

;

Monthly
1956.

CHICAGO, 111.

;

Results

Table

IT,
differ¬

fared

Republic,

William A.
with

135 South La Salle Street.

them—

Geo. J. St. Germain Opens

Venezuela

and Ecuador—the volume of ex¬
ports has increased
substantially;
in two—Costa Rica and El Salva¬
dor—it has grown
moderately and
in
three—-Cuba, Guatemala and
Honduras—it has fallen.

(Special to The Financial Chronicle)

PEORIA, 111.

Germain

offices

from

North Madison.

was

securi¬
234

formerly

with D. J. Risser Co.

According to income estimates
indirect indices, real income

i With Rache & Co.
(Specific-The

lYrvMolrj

DETROIT, Mich.
German

has

staff

Bache-:&

; ;
V;

Financial Chronicle)

ni/ri

^VTm

page

George J. St.

—

engaging in

business

ties

and

—

connected

now

Television Shares Management,

quite
non-inflationary

three

105

years

—

the

Co., Penobscot

Building.

1926)'

(Established

Announces that
the

of August

business will be conducted

1st, 1956,

under the

name

Mackellar, Wisener Limited
MEMBERS THE TORONTO STOCK EXCHANGE
t,.■
j

Chairman oi'rthe Board'

: .\r>-

"S. R. Mackellar

President

■:

Vice-President*

Frank fe/ Weller

Philip A. Wisener

^UOCt dttlWHted TO atJOUt lllTfe
ft.p

Directors

pvnansion

R. I. Hay den

'■

C. R. Wisener

Compensatory

Opposite

Policy

the

opposite
her

■>

\»

25 Melinda Street

Toronto 1,- Canada

Since

sign.

suffered

exports

has been fol¬

sharp fall, .Cuba
a

Mackellar Building

policy,

a,.' compensatory

policy of deficit financ¬

•

has
in

naturally

the loss

been
part of

and

the

dollar

country

during

re¬

had

decade, when sugar exports were
at

high level.

;

760-960

The Board is

•
-

-7-;;. in

§4680

zuela, Ecuador

have

100

have

complete

ex¬

change freedom and three—Vene¬

1765-1825
1

•

inflation

and

Mackellar

Costa

now

comprised of lU

Philip A. Wisener

,::A,

C. R. Wisener

Frank G. Weller
S. R. Mackellar

R- l-

Hayden

Rica-

relatively

narrow

spreads

WISENER

principal rates. Both

AND

Hayden

multiple rate system, but

between the
in

preceding

the

Ecuador

and

Costa

Rica,

COMPANY

LIMITED

the

spread has been substantially. re¬

1955

the free

compared

rate

was

with

not

highest

quoted.

off'c'tl

No official

rate

•'•••-

Financial Statistics,
April,
1956.

Statistics, April,

duced

rate

•'

has

since. 1948.

been

reduced

Ecuador,

King Street West

Toronto 1, Canada

from

54%

it
Members

•

1956, and Monthly

16% and in Costa Rica, from 44%
to

19%.

of the Investment Dealers' Association of

,'il

■

gold

which

p Seven of the 10 countries with¬

1756

re-

of the following Directors of the Company

■

We take pleasure in announcing the appointment

the

out

r: A'

her internal economy. This

200-350

774

Donald J.

added

been

S. R. Mackellar & Co.

under

530-450

1776

vl (Special to The Financial Chronicle)

Johnson

the

countries.

Financial

Feb.,

seen

& Co.

the

(marked*).

and

Export

may

with

Average

International
1 i>5f»,

was

when

1953-54

Mr."

„

224

" v.* '.
1183
' v
749

December, 1955.

380

\
i"

December,

:>'-'SOURCEr International
Eutleun

April,

Co.,

Bank of New York.

EXPORTS:

bank

statement of fact.

supply by

nioney

182

1948,

Bulletin

Tables

Street.

Salle

in the Government debt held by
the banking system.. From 1950 to
this? policy neutralized as
much as 35% of the expansion and

built

132-106

; 210

goods.
in

1954-1955

Statistics,

Sjostrom was formerly with Kid-,
der, Peabody & Co. and prior
thereto was Chicago representa¬

II.
OF

South

tive for Geyer

notes

re-

partially offset the expansion in

tfie

serves

$292-128

At*

rate

and

See

meant to be a

is not

substantial

163

252

December,

121

PRICES:

associated

170

_^w

+September, 1948.

105

United States._

°nly one country, Costa Rica, has

fleeted
v

188

SFree

with

and/or

commercial

policy
-

206

Brazil

Robert A.

—

become

has

Shearson^ HammiH

external

100

—

import

surplus

criticism but

lowing

♦When two figures are
listed, the first compares the lowest rate existIng In December, 1955 with the lowest rate in
December, 1948, and the
second compares the
highest rate on each date.
tRoughly recalculated reducing weight of coffee and
increasing weight
of

offset

100

Uruguay

United States——

114

192

exoorts

pressures

with

•

with

158

Bolivia

208

Australia

wUcW

130

Paraguay 1—J——-

—

inprpa„p

'"crease

148

Chile

with

ing to cushion the import of this

———

Continued

a0™e

.fa

100-100

Sjostrom

...

has increased in all the countries
in this group. Tbs*
ibor&ase seems
to have been
very large in ElSalvador, the Dominican Republic,
policy: they have permitted the
money supply and monetary in¬

fall

mm«m

Argentina
«*

100

•>

whose prices have risen only
moderately, have followed what
jhay be called a neutral monetary

1952," when

Nicaragua

ex-

change rates' have remained stable

fl23

Salvador

Mexico

(

America

100

Peru
*•:.

coffee

100- 83

■

Haiti
"

pressure

higher

126-

113

Colombia
•

•

the

prices in their small economies,

but: of

.v, 100

118":

;

114- 87

Honduras
*

•

\.K<

105 '

;

___—-_

Guatemala

V "t"/:'

risen

129

—

Rica

Venezuela

100

102

have

Another country, Cuba, has also

;

countries

the U. S. dollar value

seen

applied

Cost of

89A::-V*.

Dominican Republic
Panama"--

'•

112

Rates

10 of the

moderately—in four of them, the
cost of living index has increased
more than 20%, but this increase

1955

American

10 have

100) "

*ra

(Special to The Financial Chvonicle)

CHIC AG O, 111.

Canada

kept stable exchange rates during
the last 7 years, while the other

A'A; '•
(1948

749-

SOURCE:

Cuba's

Prices and Exchange Rates in

Exchange

shows that

1756

•;

Shearson, Hammill & Co.

-----jii

Bolivia

Stable

*1£2

*86

VOLUME

Table I

210

*79

reserves to

....

payments
r

many

exchange

movement

Brunswick

for

though, there

level-of

New

prices

through multiple

b, Sen.r n» before the
Banking
Summer
Schrot.

Rutgers
University,
N. J., July 17, 1950.

production, on
on
has
expanded

declined, in spite of

world

continued

size,

study -Latin American countries

r^I7.ddr...

large

materials and foodstuffs. Bal-

raw

\ance

Generalizations Dangerous

Given

the

production

hand,

even

weapon

R. A. Sjostrom With

*135'

252

Dominican

comparatively fast

^xP°riaDie

the

Exportable

aie'

bankin-eIvstemds monetary! and
|

130

*107

206

380

tries have either declined

monetary

increased

ap¬

#'.114-.::
-

-----

ently

one

end, we find
primitive agrarian
economies where barter still
prevails, while at the other .end there
are

have

come

interest

not

this week.

pear

to nearly 98%. As should be expected, prices in the first 10 coun-

balance of payments strains have
been the principal problems to be
faced. As a rule, production for
the domestic market and real in-

come

reserve

will

Latin
:

servations"

109 1,

188

work

of monetary developments
in the 20 countries under study
during the last seven years shows

credit

"Ob¬

170

Argentina

tightening :of

bank

148
:

Nicaragua "1"

;

145

,123

1 Mexico*

away

115

Uruguay

..140

v..

113

Salvador

experts

survey

wide differences in
per capita in-

of their currency fall by from 11%

exchange developments and policies in recent times. An overall

(Haiti)
Population

Brazil.

economy.

Guatemala

monetary policy.

are

countries

>90

hisV column

data

will begin by trying to

credit

i,icau,.

(and

through
requirements
and portfolio ceilings; little use of
rediscounting and no use of the
increased

Some

Per capita inalso widely different,; <, that > rponetary ;
expansion^ has
ranging from less than $60 in continued to. be the predominant
Haiti, ' Bolivia ■'; and > Ecuador to policy in the majority of the large
mbfe than $300 in
Cuba* Uruguay, Latin American
countries and,
Argentina and -Venezuela. These consequently, that price rises and
comes

108

and

not

uctniv
bank

commerce);

commercial

rate

what we consider to
be the most important features of

ranges from less than one million
in Panama and
Costa Rica to 58

million

149

106

Chile

from

summarize

from

miles

3,300,000

them

structural

the

today,

areas

10,000

the

among

indi-

range

Felipe Pazos

105

Rica__i_

Brazil

activities

hence

Costa

Peru

cuiuunjeicicu
commercial

en-

South America,

Ecuador

ex¬

finance

production

origin, culture, aspira-

group.
In order

popula¬

Their

general
must
be

any

•'

104

____

and semi-Government,
securities;
selective credit controls to chan¬

countries, or of most of
them, to make it legitimate and
interesting to study them as a

miles

have

and

Colombia

American

million

total

follows: credit

route

Experts

Honduras

patterns of behavior of the Latin

of almost

square

may

Cuba

Central Bank; investment of social
insurance funds in
Government

brought about enough similarities

Republics in

area

trends

Repub.
Venezuela

early

tions and ideals, and the parallelism in historical evolution have

France. The
cover

the

'-t

A.4; Wilfred May is

Prices

(mainly the former); sup¬
port of Governmentand semiGovernment
securities
by
the

interpreted — with
However, the com-

care.

munity

by Spain,
Portugal
and

and

—

great

!ries

.20

single subject and

XVI

since

'•

100)

Domin.

neinel-

the

'•

Volume of

ment

applied

(1948

Policy

public works;
credit expansion through official
credit agencies to finance indus¬
trial i and
agricultural
develop¬

realize it is possible to
enjoy expansion without inflation
and financial
instability.

generically

These

summarized

— as
monetary expansion, small
capital, and vast credit expansion. Notes con¬
tinuing predominance of inflationary policies, with 1 their
serious effect on
foreign payments. Concludes Latin American
economics and responsible
goverment leaders now are coming

Latin America

thirties.

cites vital
group similarities
inflow of foreign

Credit

banking

and credit, policy
has been characterized by a con¬
tinuation of the trends prevailing

General Manager, Minera Occidental
Bosch, S. A., Havana

and

TABLE

Prices and Volume of
Exports
In 1955

private and public, has1 been' small.

Exchange Policies

Canada

The Commercial and Financial Chronicle

(578)

institutions exist to facilitate this

Our Debt Problem...

TABLE

And Economic Growth

$82

163

1.79

the money,

104

...

billion in next decade created by combina¬
units and private borrowers. Asserts to

1940__.

1945—

expansion, we must have either unbalanced Federal
budgets or unbalanced private budgets. Cites benefits from
larger proportion of our savings going into-equities. Con¬
cludes prevalent thinking about debt policy is in
most
primitive stage.

•

1955—

ought

decade

devoted to

the

matter, we have learned that
compounded doubles every
28 years. With this lesson learned,
2 y2%

are

now

properly
giving more
very

attention
the

are

necessary

maintain the
ex

d ing
This

p a:n

economy.

sensible

•

that doubling
jiving stand-

ards

ev e

generation is not automatic. It is,
in fact, a most unusual
perform¬
ance, happening to only a small
proportion of the world's popula¬
tion.

what

problems

order

and

year

earlier

two

Now for at least

long

ular data

reg_

total debt have been

°n

published, there has been

a fairly
relationship. between
the

volume of total net debt outstandinS and Gross National Product,
This is, of course, perfectly under-

TABLE I

tentative exploration of

491

1.72

about .53 continues.

reducing

658

1.70

that

Now this is a perfectly defensihie view, and it may be that the

?:V

285

387

Paul

VV.

.ONP.

1948—
1949—

257.3

Debt

Change

257.3

TABLE V

Accumulations,"

(Dollar
v

.063

,1929:

+ 14.2

.055

42.5

.149

285.1

1951__.

1952__.

some

328.2

33.9

1951—

30.9

.690

the

Let

two.

illustrative
'

the

decade

■

-that

purposes,

whole

.132

and

undey+he

equilibrating

pressure

market forces.

But it may be use¬

ful to look at

free

them, because they

at least potential problems.1

aie

Though

their

results

differ

V;';:
in

minor details most
growth models
suggest
a
1965
Gross
National

Product 40 to
levels in
for

50%

above present
terms.
This allows

real

somewhat

per

rise

year

than

the

labor

•;!%

force,

iBuio,

data from
Commerce.

National
a

Product fluctuated
substantial range but

over

billion....

* -

One can, of
course, look at this
whole matter from another
point
of view. The ratio of
the volume

totai'debf

variables.

outstanding tuGNP

$658 billion at the

Nevertheless

review

the

projections whose target
years;have already been reached

jections
curate
lor

can

lpn^"rai?
be

sufficiently

serve

public

and

useful

private

Indeed this

purposes.

are

beint,

f°r

so used.

P1*0"
ac—

guides

planning
fortunate

worse, they

increase to a $565 billion
(in present prices) by 1965
ought to be quite feasible.
It
would
actually require an im-

GNP

provfement

productivity

moderately better
war

decade.

only

than in the pre-

Higher

capital out-

lays, more research, technological
development, greater attention to
behavioral
man

and

relations

motivational

problems

—

hu-

these

Type—

State

and

by John

the

tripped
problems

fcrpnttpn

held

Airey,

Chairman

Corporation,
about
has

180

formerly
King-Seely
my
thinking

off

explored

here.

Most of the country's annual net savings flow into savings
deposits of banks, insurance'ccm-

panies,

mutual
savings
banks,
savings and loan associations, and
into our great thrift institutions

generally. With minor exceptions
these institutions can invest these
new

afe

-—...

about

733

3J.

', 6

Total

savings only in assets which
the

debts

others

—

mort-

bonds,

short-term

50%.

most

For

double

rising

the

U1.

PUbllC

and

private

debts

tho oLoiu- doubled every Quarter o£

(.ions

stituted

no
worrisome problem's.
during much of our history
private, debt has been virtually
equal to total debt, so the question
never
really arose. • But we are
starting into the next decade with
many already uncomfortable about
the large volume of private debt.

Yet

G/G5.

not

decade,'
*

course

debt

TABLE

sumes

If the adminis-

balanced

v-v

(Dollar

have

reached here.
,:tury

or so.

And

our

amounts

1955

Type—

Net

to .be- almost

asthat bank holdings of "other

(reQuljed =to meet the increased

private plebt 388

State

and

govt,
w

Total
Federal
crease
ClCcISt:

590

+52

debt

+52

232

352

need

+52
to

remains;

We must

in¬

OliilOn
billion 111 the aecaae
in me decade

in-

Federal budget sufficiently

balanced

the

years

required

un-

ahead

cen-

great financial

give

total

$1,000
(Table IV).
us

billion
*

larger proportion of our savings
were to ga into equities, the prav
going into assets ^which

debt

the debts'ofothers couW be

—

direction.
*

+V*

«11

we are

it does not

Yet

moving in this
'

•

probable

seem

that these changes will be of ma-

jor proportion in the years ahead.

major shift into equities by in-

surance companies,

banks, savings

decade ahead most of the savings

flowing through these institutions
(and this is most of total savings)
will continue to be invested in

bonds,
are
v

additional

securities.

ing questions about the financial
requirements for achieving
.

increase

in
'

real

national

the

so.

these questions we must now turn,

de-

money, supply by
amount?
Obviously

will

problem in the
The Federal
has enough elbow room

mechanical

sense.

through its
serves

own excess ?gold reand power to reduce mem-

ker

requirements

reserve

that the primary

position
0f member banks will impose no

limitation.
The

reserve

question

apt

arise from internal bank manage¬

policies.

One already hears

comments

banks feel their loans

that

some

high
relative to de-

many

apparently feel

they should

that

It is to

bank

the

neeed

there

institutional

face

in expanding

50%

income

the jiext decade or

Will

posits and

occasional

All of this raises some interest-

term

assets which generally

the debts of others,

(2)

problems

ment

government

shorter

mortgages,

loans, and

expansion of

portion

Reserve

comes anc^ sa^®> or we must have

+ 52

would

rapidly than private

provide
33

658 1,000

$120

•

Change

local

debt

d^n^am^K

billions)

i :

the

exactly .dences that

deposits to show

either accept the fact that private
debts can for the indefinite future

1965

I9r5-

for

total debt.

j*1
^n<^, sa^e®,(as measured and loan associations and the other
hy,™?)* bank holdings of Fed:. major thrift institutions. For the

rise

■;

account

decade, and the Federal .rto go into equities and the subhands of the public, stantial <
growth
of
investment
about
10%, bank loans companies- are among the evi-

The .dilemma

over, greater tendency of pension funds

T? rtrlm.nl

investments" (mostly municipals)

Second Estimate

debt

the

need

Total Net Debt in the U. S

Federal

There is, of course, one way out
of this dilemma. If a substantially

ex-^

the

and sales if private debt is

comes

the "needed" expansion. This

+0*.

•'

$733 billion

because

still relatively quite large, private
debts for several years must grow
about 50% more rapidly than in¬

♦

rise
For bank, loans outstanding-to
'"needed^'Tls<r onlyvin proportion to the rise

con¬

And

total to
or

low

were so

rise relative to incomes

shift would be all to the good. The

(Table VI).

*'v\/s«.4

doubled for bank

~±To

could rise only to $590 billion, and

a*-Qnired bv Others and Spent. And

that

$230 $345

trative bud8et is

the
•

i~nnrt

the immediate postwar

correspondingly reduced. - Meas-r
ures which inight facilitate such a

+50 / will

;

eral debt in the hands of the publie will be the same.in. 1965 as.in

declines

nnociwuf,,

1955

amount, net private debt must al-

loans,

for

ahead.

era} obligations tothe total Fed-.are

';';

210

be-

cannot

period private debts

$209 $314
/Miscel. * liabilities—v
3 + 4
Capital2——— •; 18
-27
1

But

case.

196o

-a&b

and

now

31
1 6

$230 $345 $345.

Federal

th?t f^fs will be particularly interesting^roblem to toe decade

108

Total

".+89":

o58 I,U00

theindicated

■

ducing the net debt of thfe Federal

that is the process by which total

thn

Lcounubie

tween

137

unbalanced

sales in the latter

Deposits

■V

—

xotal

This

vious.

^ave both,

G/55

Chanie ;

local

debt

govt,

rr.*,1»teT" bc,„h:^eSO'o„MEcor„"!:ric down",w/C0"TJ }f n0t t0 ^ Federal' Govt.:::
Growth, Dartmouth College.
down, those saved dollars must be
Prerideni

91..

—

Liabilities—>'

•

•Federal Govt— 232

(Table II).
"Whether we look at

gages,

comment

./ eral Government securities must
increase $36 billion by 1965.: This,
the prob—
treme case
The- figures could
^ coinrso, might reflect, simply- a
able annual increases in debt or
at
have been'made toshow much \sh.m in ownership of the debt,
^e volume of debt outstanding -more starting results if substantial
^a^ic-s
'I11ore
which would be appropriate ** to progress toward
~paving off the
holding less*. But this mere1965's GNP, we reach thei
cor;,
debt had been assumed. '
\"t u :?£ transfers , the problem'.since
elusion that a $1,000 billion? debt : Let us
alternatively assume that ^f.11
® demand for private oblilevel
will
almost
certainly
be private borrowers are prudent and - ?a^tions by the nonbaqk public ?vill
reached in the decade ahead. The increase their
debts only in proe5ua,e, .ris?,11?.
^ ^ a?'
process by which these additional portion to the ihcrease in their inp
the hquidatmmof their
debts will come into being is ob- come.
In this casu private debt holdings
of- • Federal obligations
end

either

budgets or unbalanced private'
> budgets in the decade ahead, with
m
rising
private debts —~0_ substantially
~
„
more
rapidly than incomes and

19G5

/;
Net private debt 388

of 1955

■

1 A

have

$63

doxy are mutually inconsistent
for the period ahead. We must

; the ratio of bankholdings of Fedr

■

♦

;

in .billions)

1955

$1,000
-

.,$42
72

re-

Vumv

•

(Dollar amounts

pushing

over

*/r\

have accumulated about;
$430 bil¬
lion of additional
the total to somewhat

$63

■

.+ Miscellaneous

Total NetDebtto the U.S., 1965
-.First Estimate -<■ '
->

has,
no
continues, by the time we reach
doubt, taught us considerable hu-. a
$565 billion GNP total debt outmility about predicting long-run
standing, should range between
trends or even the more
stable, $960 to $1,020 billion. This comslow-moving, and "forecastable" pares with
of

'TABLE III'

over

debt,

Fed. Securities

Government's administrative

by $22 billion, correspondingly

averaged
(Table I). /If the
savings and deficits in the econ¬
omy continue at about the same
relative size, by 1965 we should

just

Loans

budget is balanced. In Table HI,
trust fund holdings of Federal obligations are assumed to. increase

.SOURCE:
Department

.536

for

51.3

»■

387.2

Cash

the Fed¬

1955—. -887.2

imbalances and
disequilibria arising out of fairly
mechanical projections
fortunately

.532

.528

for

us * assume

eral

gaps

328.2
364.5

'Other invests.

.057 v;

Future

174.7

1955— 207.7

20.6

arise.

.583

1954.21: .-360.5

never

.525

125.8

ing

may

$104.4

73.4

....

.083

problems

vate

piy * gnp

565.0
.531
<[1965— 300.0
absurd.Nevertheless*
there may quite possibly be some
IJProjected.
problems here, and it may be use•
,inc_
.
.
ful to explore them further. They- pl^by 1965. And all but iiHio%
illustrate, I think, the kinds of 01 this must _presumaDfy pe acquestions which are just under the counted for. by^an expansion of
surface of the projected GNP to- bank deposits (Table V).
y
Let us explore some of the imtals for some target year in the
plications of this need for a 50%
future.
* •?
J
increase in bank deposits by 1965.
At
the end of 1955, total net
It will be useful to assume that
debt was $658 billion.' This consisted of $388 billion of private
TABLE VI
debt; $38 billion of state and local
Assets and Liabilities,
government debt; and $232 billion
All U. S. Banks
of net Federal debt
(excluding
(Dollar amounts in billions)
securities held by trust funds,
+
■./'/: <;/r»5 ' —(>/G5—•
etc.).

30.4

The

by the current tendency for pridebts to rise more rapidly
than incomes. If economic growth
is hot to be placed in financial
jeopardy, we must recognize that
these twin tenets of fiscal ortho»-

Money Sup-

at' least pointless and quite

seem

364.5

billions)

in
GNP

But it is fair to

that many of those who hold
this view have also been disturbed

possibly

1953—

high time to start

huge debt."

public debt should be reduced in

1953— 192.6

iasm about taking on more debt
in 1955 makes the whole question

questions

concerning the financ¬
the expanding economy.

our

the years ahead.

$54.8

.103

345.2

"it

say

1941—

rowers, and in all probability the
result will be some combination

1950__.

amounts
Supply

% GNP

because

Money

June 30

Chge.

16.1

ratio

current

This suggests
shall need about a $100

A ecpf c

Debt

the

Money Supply and GNP

going to account for
roughly $400 billion Of new
debts (net) to be created in the

(Dollar amounts in billions)
Year—

that

"Cyclical

McCracken,

the

that

rapialy than Gross WaProduct, but suppose we

Now who is

Increase in Debt and GNP

My comments will be confined
a

this historical trend will continue.

later, is not a matter of great importance here.
'

roadblocks
certain

$565 billion GNP turns

1965,

be faced is all to the good—

may

°*

why it happens and

assume

Will we have any trouble reachwar decade, which included the
lost weekend of the great depres- ing this $1,000 billion debt level?
sion. Whether the precise figure Probably not. Indeed our entnus-

Consequently the increasing

emphasis

tionai

1.90

(Harvard, Doctorial Thesis, 1948); Col 3—U. S. De¬
partment of Commerce.
'
' "

rate

standable and to be expected. The

tainly suggests

ing

1.88

pre-

size of the savings and deficits in
the economy from which debts
arise is related to the level of
national income (and incidentally
to its direction of change). In the
post-war period the ratio of the
change in total net debt to Gross

cer-

1.84

190

Col. 2—U. S. Department
Commerce
except 191<> and 1925

from

the world

191

406

Implications' of War-time Liquid.' As¬

growth

\ y

101

billioan addition to the money sup-

around

step.

look

J>r. p. w. McCracKen

permit

that secularly
supply has been grow-

evidence

some

+ :■< ;•

SOURCE:

substantialy better than the

conditions

h i

same

214

1950...

set

After

maintain

$49

1916—

;

(1) Is our growth potential possibiy jeopardized by a sort of
ideological
double - mindedness
about financial policy? There is a
possibility tnat it is. Tne view
that the public debt is too large
and ought to be reduced substantially is still a very prevalent one
and receives support in very high
places. Secretary Humphrey, be¬
fore the National Press Club last
month, opposed a tax reduction

and Gross National Product. There

(3)

1925^_.

exploring the financing of our expanding
predicts our total debt outstanding will increase by

one-third to $1,000

Debt

CI)

1929—

Prof. McCracken,

tion of government

<4)

1.67

(In billions)
S'tiNP//'(1)

see

.Thursday, August 9, 1956=

>+->

+ ;v:

Debt 4- gnp

Total Net Debt

Professor of Business Conditions, University of Michigan

this

problem in a
somewhat different light by looking at it from the point of view
of the money supply needed
by
1965.
There has, of course, been
a fairly
close long-run relationship between the money supply

Gross National Product and

By PAUL W. McCRACKEN*

economy,

III

process.

certain

are

types of loans

are

relative ig» ucHUjiw ao XJ
ing" iClrtLivc to deposits as is wise.
*
The academic economist is in no

position

question

the

wisdom

^Volume

184

Number 5558

The Commercial and Financial Chronicle

...

(579)
of

these

policies. But if we, are
get the required increase in'
bank deposits and tne
money sup-t
ply, and the Federal debt is not
to
enlarge, bank loans will almost)
certainly continue to grow rela-f
tive to deposits.
: •" V"" ~

timers

By IRA U. COBLEIGH
:.;v

Providing

There

will
apparently be no
impediment because of an inade¬

btvrh'While

wel1 caught

...

should be
considerably

(3)

Will

these

some upward pressure on <
interest rates? This is
possible. -If '»

come more

the financing of
> may
be¬
difficult

substantial.-

evtent

that

tho

Indeed,

■

the

made

not

v e

that

••

only

m.Kli't.

-nT.-~i.-~i

A steel.
fo

monetary policy? I think itThe Federal Reserve should

have- also

corrosion

made

than

metal is hard to

sales

all

leads

,~~4.—1__

not

Spectacular

having learned that 2%%
compounded
years,

and

standard of

our

realized.

•

relative

for

ance

its

pounds,

«•

;

Canada

now

Nickel

International

-%t

fabnlous

of the

lwo 'Wlth ^ruttenden

•;.-i
■

has, to date, indicated nickel/copper areas averaging about
iy2%,;
extensive

enough
to
delineate
IV4 million tons of ore.'
Exploration and development will'
some

continue
of

and

Arcadia

has

entering production (at

1,000 tons of
1957.

the

ore

Arcadia

risen

«uuv c

day) sometime
addresses

attention

nickel
.

als0
1

youv

Nickel is indeed

strategic

;

popular and
and those who

metal,

™ m this field, International
International

model, nickels

have alluded to,

....

Hade

Metal prices

,&re often the

hnarrt

and

rnorrm

handmaidens

nfinfiatinn-

w5«h tn inve-tiffate

comDanies

less-entrenched

>*VV^A^U"C-1AV

production and

where

dynamic

ito

wainiw

DETROIT, Mich!

n«.n«

here)
well

^S
S ,..T

has

Sudbury

CrOUSe,

ore

m
(at

joindd' the

E. Fred
staff

also

LivingStone,-Crouse & Coi,

•

I' ™embers 01

J?® the Detroit Stock Exchange.

former fr0m the

With Investors

above,

•

somewhat r
Asi somewnai representativef of

those

yet

Planning

(Special to The Financial Chronicle)

BOSTON, Mass.—Lewis J. Levy-

standing common shares listed in New England Inc., 68 Devonshire
^

made only by the Prospectus.

offer of these securities for sale. The offer is

•

Co.,

-i
-

NEW

the

fourth

••••♦

$2,900,000
■

955
'*

•

Galifornia Eastern Aviation, Inc.

;

largest'-:

In addition

August 9, 1956

ISSUE

Of- Copper
in. North ,•
America (but this commodity, as
n0ted
above,
las
presented
a%
much more vulnerable price pat-

6% Convertible
.-

Sinking Fund Debentures

DUE AUGUST 1,

1968
■I

to its rich reserves -1

Sudbury, mCO-also is believed
;/.•
have a huge reserve of lower; v

'slippage of

•V:"" :**-;•
:

;

/ Price 100% and Accrued Interest

Copies of the Prospectus may be obtained from any of die several underwriters, only
underwriters may legally offer these securities in compliance with the securities laws

in states in which such
of the respective states.

—pper
copper

net

prices

from

that

will redepart-

j-,

,jb*

■

—

;

:%nlent,* sustained demand and im- ' *.-*

'" mpn.from $6.14 last year to $7.40 - - ;
«■&*: .1956. Present dividend .rate
of $2.60 ' is amply covered, and v- -;
dredge, ,Tallman & -Co^v-231 extras^^ in -cash might bring the v '
Til

-f'

'nf
.

South

Salle

B^Uesby and Gocipany - Dempsey-Tegelcr & Co.

;

Piper, Jaffray £ Hopwood

Street.

195d per

share.'
Listed, on NYSE, and in Montreal,'
International Nickel is a shining
blue " chip, ^ favored
alike'
by ;
shrewd"; growth-minded
and in-

With McGhee & Co. J
(Special to The Financial Chronicle)

;

the

Eldredge Tallman Adds V proved price: for; nickelVsliould '"? H}*'
IL H
i'.'iWw..T«c»6^>>"push up per ShareIietbn the com- iK
pincAPA

share total to $4

Cusbery, Marache &Co.

•

Clayton Securities Corporation

•V.

CHICAGO, 111. — Jeannette T." flatibn-conscious
individuals^ - as
"-Jones is now affiliated with Mc- well as some of-the leading insti-

■

;

Cache £ Co.
•

Straus, Blosser & McDowell

Morgan & Co.

Arthur M. Krensky & Co., Inc.

W. D. Gradison & Co. v.T. C. Henderson & Co., Inc.

jGhee & Company, Inc. of Cleve-- tutional investors.
land.

*-*

;

Some old Toronto and now selling around Street.

This is not

pro-

1NCO

the

equally spirited mineral per-

^. .r.;-

producer

cluce
.

able, with good luck, to pick out

Brandt

..j

^^^rfmkders^

along

—-<=»

factor

enhtimiie

Belie' "'0*nS Livingstone
SjZ £'■ 'i""1"1

^
I,

Exchanges.In .P.oint; of pr^ltabi^^'-SKS'* ^
formerly
With is moving intos its best year. W lie

Straus, Blosser & McDowell.

and

1U'

price

evneeted> to

Stock'

was -

...

jin line to foilow.the

•

Midwest

op-

have strung along with the Father

quite a few
heart bruited ^leader.

unbroken

distinct probability.

...

reserves

at.

(Special to The Financial Chronicle)

and

itself

of.' graduate

dividend prospects.

Capitali$30.7 mil-

list of nickels

our

CHICAGO, 111,—Edward P. K. grade ore at Moab Lake, Mani-.
Hade, Jr. and Michael W. Terrana toba,
which
present V attractive:*^
Jiave joined the staff of Cruttenr world
prices
are
bringing, into. ^
den &
Co., 209 South La Salle production.'
!> :
*
Street, members of the New York '■*. ;
■. '
Mr.3

tmes

around

-•

world's

tern).

r Ti*r«r- Willi

•

connected with Rein-

."«r.

year-end)
of over 280 million
tons, and; it produced some 285

Gardner, of St. Louis.
.

northeast

Mine of Inter-?
national Nickel. Diamond
drilling

Canadian

tinguishea and -JjecessJEul m

INGO

^ (Special to The Financial Chronicle)
•^BELLEVILLE, 111. — William J.
is

consists

fPPp:«Slii3,,^mfnprS

Rice

There:are:

point where dividends in 1957 are

With Reinholdt A- Carrlnpi*,
vvun iteinnoiat, oc Gardner million pounds; of nickfl last^^year.

holdt &

mile

had

have

Third

discussion

prccjucer

decade ahead.
.

v~~r

with

importin ' the

economy

dan".*f a"Sickel ^are evidenclng
considerable merit.

offer an interesting iuture to patient shareholders.

nickel producers just has to start

probable

the

Worthington

pound. And on the production
of the free world output of

Any

Second, unlike fiscal policy certainly and monetary policy possibly, our thinking about debt policy is in a most primitive stage

•

the

instances, above

million

l!iQf

improvement,

some

piace

now•

zone.

427

living is to be'

■

f£r duceX*34?'mUlion-aTo7t"s0%
be

problems which need to

faced if this rate of
in

gajh

seems' to

"gray

side,

every
28
devote more

now

have

"Nickel, have nurtured an equity
investment
with
capital conducive to financial success and
the target, Sherritt Gor—.
serenfty.
Some
of
the
junior

range

plus

•

from abroad at prices

reported, in

doubles

must

moving

per year

ran

nickel,

niarket" the shiny stuff has been

vom

w.erf
First,

conclusions.

yuc-$i.«5u

Meanwhile in the so-called

twn

is $8,133,318 of
commoPn (selling at 9V2) and $25
mnHoniln funded debt. For long

—

tie

This

reserves

of $1-35 against 87c for 1955. Pres-

earnings are conservatively stated
by virtue of deduction of preproduction expenditures, and exploration and development writeoffs.
Moreover,
estimated
reserves have been steadily expandft
ing and now
^an<l ®t over 4U
million tons.
Falconbridge sun

Conclusions

upward curve since 1946; and net

o-v_

some

zat'ion

relieved from

ever

about

ore

again

million

present quotation of 42.

it*

get, and has a top level governmtnt
priority, two courses of
concern about debt
management .pricing suggest themselves. Either
operations, .and therefore more ration the element for civilian
free.to make policy decisions acuse, or stimulate production. Tne
cprdmg to the needs of the com,-,
u. «. Government, large stockpany. But with the economy .more
piier of this important metal, has
ann
mnrp
Qiietairx^rl
and more sustained hv -fho
by the ex- chosen the latter course, and is
pansion of private bank credit, the
definitely encouraging even mareconomic situation
may well be- ginai production—in Cuba, Louicome
even
more
sensitive
to
and Oregon. While the offichanges in Federal Reserve policy.. cjaj
prifce for nickel is 64%c a
be

present

Here

—

Its toughness and .resistance

Now, when

does.

concen-

ent ,capitaiiZation

should exceed 55 million pounds,
Assumingcontinuance :' of
the

metal

nas

^buHget is balanced.

copper,

process

able jper share net is in the order

ry,

have

scarce

a
~

Pobcy wouid

for

pounds

tons

Sherritt

should produce nearly-20. million
tons of nickel "this year and prob-

mg,, cobalt,, platinum,
gold
ana
^special ;uses siiVef;:;By^i960; nickel output

Cobieigh

be
«/c

million

millionpounds of

million

$2.30.

nickel/copper property
in
the
Sudbury district, with holdings'

; tons,
Sherritt
has timists, and long-shot
speculators,
enough grist for 20; years'milling not particularly sensitive to the
at
the
current"; rate. :The:..mill absence of immediate
earning or

?o me? very'

V some

Ira

*v.

Federal

price-sensi- to

'®e^C)rs^^''..22

has, 100,000

certain; kcres
there)-;i955 production

•

very

out

with

of the stellar
companies in the re-

Tival tematiohali >Nickel

which should expand prof-

liability

It is doubtful if in practice this

trates

^e. lts properties consist
63r.°00^cres. in thejabulous
^(a^tiume js mineraL district at Sudbury (In-

operations

pressure on interest law..] will
jc-—.mwviji
rates wm

working

1<>6J4

rapid

quite

delivered

Falcoiihridge,k[one

nipkel

year,

glean cobalt from nickel

noWn$d: J&entures^ Ltdx mineral.
ufJUtn empire,.'
moving .aheadi at

rOr, to put the matter

.risky

though

•.

atively less important in port¬
folios,- private obligations may re-*
quire
higher
interestrates : to"'

in another way,

scarcity.'operating

the

New-

pounds of nickel and 55,000

^Second *91 d e s t a n d second
largest of we''Canadian .nickels is

per .si s

developments,,

government securities become rel-~

management

of ammonium sulphate.

create

exposure.

last

l^cc^^ven
HNCU,

•

mont
Mining Co., this property
lias developed0 to a point where,

this strategic metal,

^°t be spending
now, pretty-ly by lodging them

mg •
; • p resent-, v a

Spurred

more.

aggressive

copper,

compensate for the increased risk

leading Canadian producers thereof.

way,:bentfit-aoday.;,

-v •':-

have, by

than

•

the

But
.

mmmmmmmmmsmimmm

larger

•

„

with the demand though -thev
c0^^aJ13?,
sides, nickel'goes along its merry - Jronv ^3 - m mid ll^y < to

rate

at the, present time, i

investor slanted notes

some

production

jea(j and zinc

beeh^ln^11^+s+v!ce I~95°f rVw
via? If this
roSfinu^'
?h*
Der

Enterprise Economist

and current data

quate growth of capital resources.
The total
The tntal ranitoi accounts of
capital
of com-

with

•

Canadian Nickel

associate

this
property
tired, worn out copper
mine; and some years back it
might have been regarded as such,

few spare

If you have a
nickels, you'll probably

The Commercial and Financial

(580)

Fairchild Camera & Instrument
closs. Parker &

Broker Investment

(

Fenestra,

Food

be pleased

that the firms mentioned will

understood

Company find three

Market—Report—New York Hanseatic Corporation, 120

Japanese Stocks

—

Current information

Yamaichi Securities

—

McGregor-Doniger,

CO., Ltd., Ill Broadway, New York 7, N. Y.

Life

Stocks

Insurance

market

Most

vs.

Popular

New York
.

request

letterhead—Kalb,

Voorhis

Co.,

Puget

Stocks—Comparison and analysis for sec¬
quarter—Laird, Bissell & Meeds, 120 Broadway, New
York 5, N. Y. -

Schick

Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

son,

way,

Texas

Comparative figures — G. A.
Co., Inc., 70 Fine Street, New York 5, N. Y.

East Las Olas
Reduction

—

Iowa Investment Bankers Asso-

Pacific

Bulletin —J.

—

Williston

Co.,

115

Wall

Johnson, 312

—

Co.,

—

Rockford Securities Dealers As¬

sociation seventh annual "Fling-

Lines, Inc.—Report—J. W. Gould & Co.,. 120 Broad¬

Ding" at the Forest Hills Coun-;
try Club,S
:
;

■

(Detroit, Mich.)
Association of Stock Exchange
Firms meeting of Board of Gov¬

Oct, 4-6, 1956

Racing

Bank

and

Investing

Corp.,

ernors.

Oct.

Trust

Street, New York 5, N. Y.

1956 .(Palm

24-27,

Springs,

Calif.)
National Security Traders Asso¬

Convention

Annual

ciation

the El Mirador Hotel.
Nov. 14, 1956

Firms
-y-t

1 v.-?

(New York City)

Association

of Stock Exchange

meeting of Board, of Gev-

ernors.

,■

Glass

Co.

—

Analysis

—

Eastern

NSTA

Report

—

Association

Bankers

meeting

Co., Ltd.—Memorandum—Kiser, Cohn
maker, Inc., Circle Tower, Indianapolis 4, Ind.

the

annual

Hilton

Statler

Hotel.

Street, Now York 5, N. Y..Y- Y ^
Oil

Beach Hotel,

April 21-23, 1957 (Dallas, Tex,>
Texas
Group
of
Investment

Securities,

Georgeson & Co., 52 Wall

—

convention

annual

America

at the Hollywood

Y, Inc., 120 Broad Street, New York 5, N. Y.
Bucyrus-Erie Company

Investment Bankers Association

Corp.

New York.

Window

(Hollywood

25-30, 1956
Beach, Fla.)

Nov.

115

memo¬

Burmah

Country

Sept. 27, 1956 (Rockford, lit)

—Analysis—William Blair & Company, 135 South La Salle
Street, Chicago 3, 111.
Western Air Lines, Inc.—Bulletin—John H. Lewis & Co., 63

& Foreign Power Company, Inc. —
Analytical bro¬
chure—First Boston Corporation, 100 Broadway, New York

American

and

Club.

American
'

Golf

Moines

Des

Company—Analysis—Winslow, Cohu & Stet¬

New York 5, N. Y.

annual field day at the

ciation

Boulevard, Ft. Lauderdale, Fla.
Co.

Gulf Oil

Memorandum

United States Life Insurance Company in the City of New York

;.v

Memorandum
Goodbody &
Broadway, New York 6, N.; Y.u Also available is

randum

—

Company of Dallas—Report—Garrett
and Company, Fidelity Union Life Building, Dallas 1, Texas.
United Asbestos—Memorandum—Brew-Jenkins Co., First Wis¬
consin National Bank Building, Milwaukee 2, Wis.

—

Products, Inc.—Analysis—Roman &

Co.

Corp.—Report—General
Wall Street, New York 5, N. Y.

for

,1:.

Timber

St. Lawrence Power Project—Progress report—New York State
Power Authority.- •

Air

the University Club of Chicago).

Sept. 20, 1956 (Des Moines, Iowa)

26 Broadway, New York 4, N. Y.

Southland

Today's Investor—Pamphlet containing lists

Utility Common Stocks

Control

; 20th
annual field day at the
Y Medinah. Country Club
(prei ceded by a dinner Sept. 13 at

;

income, growth and trading—
Harris, Upham & Co., 14 Wall Street, New York 5, N. Y.

Air

Co.—Memora^

Department, Security-First National Bank, Box 2097, Ter¬
minal Annex, Los Angeles 54, Calif.
•.
<
-

Stocks—Comparative analysis—Moore, Leon¬
Lynch, Union Trust Building, Pittsburgh 19, Pa.

Saxton &

ill.)

Municipal Bond Club of Chicago

Southern California Business Conditions—Summary—Research

Pittsburgh Bank

Public

Pulp

Incorporated

Seatrain

Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N.'Y.

securities

Sound

Schield Bantam

used in the National

for

Broadway, New York 6, N. Y.

Jones Averages and the 35 over-the-counter industrial stocks

selected

and

Hotel

the

Sept. 14, 1956 (Chicago,

Northwest Company, Exchange Building, Seattle 4, Wash.

Over-the-Counter

meeting " at

Bank

ond

Pocket Guide

Convention

34th

: Radisson.

;

Pepsi-Cola General Bottlers, Inc.—Card Memorandum—F. S.
Yantis & Co., Inc., 135 South La Salle Street, Chicago 3, 111.

Broad

•

annual

Depart¬

(Minneapolis,

Women

—

■■■•;Minn.)
National-Association

Co., 120 Broadway, New York 5, N. Y.

New York City Bank

ard &

Central

Panhandle Eastern Pipe' Line

Street, New York 4, N. Y.

Inc.—Analysis—Unlisted Trading

American Telephone & Telegraph Co.

Services—Financial planning service, includ¬
ing advertising materials, data on tax laws, telephone selling,
prospecting, sales meetings; etc.—One month free to dealers
on

Aug. 22.

party at the Omaha;
precede the event on

Sept. 1-2, 1956

Report — Peter P. McDermott & Co., 44
Wall Street, New York 5, N. Y. Also available isa circular on

Modern Security

selected portfolios.

ment,. Ira Haupt & Co., Ill Broadway, New York 6, N. Y.

Issues—Comparison

actions-Morgan & Co., 634 South Spring Street,
:/)
,
.
-

Los Angeles 14, Calif. f.

Club will

Industrie Electrica <ie Mexico, S. A*—Analysisr-Cosgrove,; Mil¬
ler^
Whitehead, 44 > Wall Street,; New York 5* ■ N* Y.
Y

^ Broadway, New lYorkr 15, 'N. Y.

cocktail

brief analysis of Parke, Davis and

day at the Omaha Country Club.

Co., 1 Wall Street, New York 5, N. Y.

issue is

(Omaha, Neb.)

Nebraska Investors Bankers As¬

sociation annual frolic and field

Iloudailie Industries, Inc.—Analysis—Maltz, Greenwald & Co.,
1441 Broadway, New York 18, N. Y.

same

Field

Investment

Aug. 23, 1956

Company—Analysis in current issue of "Gleanings"

Also in the

Atomic fetter (No. 19) with comments on competitive atomic
power, boron, lithium, nuclear weapons program, et6—Atomic— '
Development Mutual Fund, Inc., Dept. C, 1033 Thirtieth r
Street, N. W., Washington 7, D. C.

Chemical. Corporation — Analysis — Dean
Montgomery Street, San Francisco 6, Calif.

—Francis I. du Pont &

Bond

EVENTS

—

Machinery &

II. J. Ileinz

COMING

Tennessee Gas Transmis¬
'

—

Witter & Co., 45

the following literature♦

send interested parties

Inc.
Memorandum
Wm. C. -Roney & Co., Buhl
Building, Detroit- 26, Mich. Also available are memoranda on
Kellogg Co.: Lear, Inc.; McLouth Steel Corp., Stone Con¬
tainer Corp. and WJR (The Goodwill Station), Inc.

Recommendations U Literature
It it

memorandum

Thursday, August 9,1956

...

Corp.—Memorandum—Auchin-

Rodpath, 52 Wall Street, New York 5, N. Y.

Also available is
sion Co.

Chronicle

Nov. 3-6, 1957 (Hot Springs, Va.)
National Security Traders Asso¬

LIBBING

Shu-

We are happy to report that Herbert Singer of Singer, Bean
&

Mackie, Inc., New York, is top

man on

ciation Annual Convention.

the totem pole this week.

Canadian Javelin Limited—Circular—F. Pay son
Todd, Rowley,
Mass.

yyY':f

California Eastern

Chemical Process Company-^Analysis—Walker's weekly News¬
letter, $33^Kearny Street, Sap Francisco.8, Calif.
Dow

Co.—"Memorandum

Chemical

—Bache

Co.,

Aviation Debentures

Wall

Street, New York 5; N. Y.

Offered at Par
A group

Dealers..

We believe

and

you

industry which "has

figures

grown

the .President's-

to dwarf this

Vitro Corp.-

sum

in 15-years from

ear

-$14

billion

V/,-.

equation

Herb has just sent in his renewal for

program"

the outside back

and dominate the future.

'V.;Y*'-v'i

cover

all most appreciative of Herb's continued
support.
I trust that all members who have not
yet sent in their
will do

,."•>
^

shortly.—KIM.

•

Lithium
•

•

Bryson

^Corp.

•

Foote Mineral Co.

Grinnell Corp.*
•

- -

DEPENDABLE: MARKETS

•

.High

Engineering

Troster, Singer & Coi
•

Trinity Place-

York

Y *" ""■•v

*
*

••

-Street.

•

New York 6, N. Y.

Calif.
will

purposes.

Minn. —Lor-

purchase

Teletypes NY 1-376-377-378

DEMPSEY-TEGELER t CO.

Jensen

and

Kenneth

from

Corp. of Bur-

added

capital

the

pror
com¬

will

and

general corporate
;

;

-v'

•.

Joins Manley, Bennett

ot ^anley' Bennett & Co., Buhl
York

and

Detroit

the

New

Stock

Ex-

Kolkjen are now connected with changes. -He has recently been

•

> DETROIT,
Mich. — Ralph J.
Bnwggeman.has rejoined the staff

Building, >members

D-.

three

aircraft,

(Special to The Financxal Chronicle)

Two With King Merritt F 1

rayn

purchase
the

The remaining

be available for

(Special to the fxnancx.,l chronxcle)

Aircraft

ceeds

with John G.

1;•

>MINNEAPOLIS,
-

contracted

pany's-working

i
•"

Constellation

bank,

Minn.—Leon-

now

Lockheed

•

■"

Security Dealers^ Association
•

ac¬

be expended in

of the

($6,600,000)

Kinnard & Co., 133 South Seventh>.

•'

HAnover 2-2400

Card Fi Knier is

,J"

■i

Members New

Voltage

has

electronic Associates
•.

and

Model 1049H, which the company

.iA-ivYV'Y

MINNEAPOLIS*

mrrrr

; ■

Super

(Special to The I? inancial Chkonicls)

•

- -

proceeds will

price

Tracerlab Inc.
•

100%

partial payment

ad¬

Joins John G. 7 Kinnard

Baird Associates

V•

National Advertising Committee T' ^
.c/o Pershing & Co., 120 Broadway,

net

New York 5, N. Y.

Inc.

Approximately $1,500,000 of the

HAROLD B. SMITH, Chairman Y

•

Black Sivalls

a half page advertisement on
N. S. T. A. Year-Book Supplement. '

our

are

vertisements

"r.

debentures due

interest.

crued

Herbert Singer

Beryllium Corp.

sinking fund

6% converti¬

Aug. 1, 1968 of California Eastern

B. Smith

;

(Aug.

...

Among Many Others, We Trade and Position:
•.

Aviation,

question of it!

whispered, in

issue of $2,900,000

ble
■

Harold

The

offering: today

111.,-are

Atomic Stocks
a

Chicago

Hardly

Co.,

Cruttenden. &

clients will

your

continue to profit in:

•

of underwriters, headed

■

King Merritt & Co., Inc..

with William C. Roney & Co.

Volume 184

Number 5558... The Commercial and Financial Chronicle

(581)

The Doctor in the Stock Market
Member New York

R. L.

By SINCLAIR WEEKS

Partner, E. F. Button & Company

Y/YYY

Tucker, Anthony and
Day & Co.
To Merge Their Firms

Prosperous Outlook Indicated

By G. M. LOEB*
^

Secretary of Commerce

(

■

Stock Exchange

Commerce

Nationally known broker advises doctors to: have securities
bought "for" them rather than sold "to" them; concentrate

and presents

success,

same

available to

was 7% higher than
and that July employment was at a

year,

The outlook is bright for a fresh bounce in business and
high
employment during the rest of the year. The prospect is a top

New

and fall.

litis.
dozen

years

later,

market

r e su

day,
I
was
supposed to be
"trained"; the
second, sent
out to "sell";
the
third,
I
quit.. On 7 my
second day, I
my

would.

principal

The bond house I worked for had

what

But

me.

list had the bonds my
and ^wished to sell.
It

and

window dressing

much

very

quality

better

bit. In my

panic I figured the ones I got
nothing on must
be the best.
Therefore, I selected one of them.
The doctor bought it and I was
through.

•

can

not

•

lucky
highly
dangerous profit some friend pos¬
sibly secured with a carefully
planned long pull investment or
speculative program that balances
possible profits properly against
some

possible

and

losses

only

selects

those Worthwhile.

succeeded

York

and

main

offices

Boston, the

new

offices in

Rochester, N. Y., Hart¬
Haven, Conn., Man¬
chester and Nashua, N. H., and
Springfield
and
New
Bedford,

Mass.

substantially in excess of the increased
productivity and if this trend continues
long enough, inflation obviously would be the

/!,

end result.

•'

.•

all

must

turn

watchful

Y-

Public confidence in

strong and it is based

will make another
Sinclair

record. :f Unemployment is
a
shade
lower than the June total of 2.9 million. (Com-

Weeks

(

plete detailed figures will be released next week.)
The latest personal income total (June) was at an annual rate

1892

and

established

was

almost $1.5 billion above May.

For the first six

period last

Consu¬

year.

White, Weld & Co., 40 Wall
Street, New York City, members
of the New York Stock Exchange,
on
Sept. 1 will admit Curtis E.
Neldner and Raymond D. Stitzer
to partnership in their firm. Mr.
Stitzer

seasonal increase in food prices.

was

Preliminary

es-

Vice-Presi¬

poration, with which he had been
associated for many years.
On

the

become

Clarence

date

same

Goldsmith,

Business investment keeps climbing upward.

formerly

dent of Equitable Securities Cor¬

prices in June advanced 0.7% from the May level, reflecting

times indicate

investment

Tucker, Anthony

founded

Stitzer^ Neldner

all-time

same

•

White, Weld to Admit !

good future is very

7% higher than the

established

solid facts.

rate of 66<5 million—so it

was

Day & Co.
in 1862/

July indicate that
employment is slightly higher than the June

was

Co.

eye

The over-all estimates for

mer

long

security houses.

in that
direction. Productivity, competition and wise
restraint in pricing policies, both on the part
of management and labor,
are
among
the
checks on inflationary forces. The strike was
settled in good faith and in time to avoid vital
production losses in steel-using industries.
a

77/YY/Y VYYY* '/;7

The merger will bring together
two

general

partner,

will

limited partner.

modest increase in July construction.. President

Arthur Krensky

Eisenhower's record highway program is ©ff to a swift start.
When—as now—widespread confidence is combined -with

yproduction, increased spending

and sound prac¬

power

tices by government and private industry, it can hardly fail to spell

QUINCY,

111.—Ruth

Wilier

has become connected with Arthur
M.

" '

healthy prosperity.

Adds

(Special to The Financial Chronicle)

ac¬

Krensky & Co., Inc., 114 North

Seventh

Street.

Wilier

Mrs.

was

previously with A. G. Edwards &

With J. Logan & Co.

Joins Samuel Franklin

(Special to The Financial Chronicle) "

LOS

SAN

Calif. —Ray¬

ANGELES,

Sons.

(Special to The Financial Chronicle)

being cured of mond D. Anderson, Lawrence B.

FRANCISCO, Calif. —Ho-

Columbia Adds Two

bart E. Allyn, Tom Basset; Ray-

(Special to The Financial Chronicle)

out

I selected a bond that

my firm had to go into the*open
market and buy for my client.
There

was a

Commission charge of

After I selected

whatever

was

him, I let him do

This announcement is not to

necessary.

be construed as an offer to

herein mentioned. The

My advice to doctors is to con-

the doctor good advice
how because I

centrate on selecting their in vest-

very

small one.

I then known

had

Ruptured and Crippled on East
42nd,
Street,
New
York
City,

but

could give

ment advisor. He

might be

friend.

shelves unsold at the time.

Then

"/ .7

or as a

solicitation of an offer to buy the securities
the Prospectus.

7;
1,105,545 Shares.

what he says.

Incidentally/good advice is not
In-short, I was a true "broker" confined to
large accounts. I think
and always have been.
/ '*/1
the best advice in Wall Street is
Incidentally, the bonds turned
available to anyone provided they
out very well, as they had a sterdo not waste time and try to be
ling
conversion feature which back seat drivers.
gave them a lift, bonds do not orv dinarily possess.
Avoid Obvious Pitfalls
■
This anecdote, illustrates a prin¬
I do not want to

sell

offering of these shares is made only by

NEW ISSUE'

a pro¬

had the whole open market to fessional investment counsellor, or
choose from. I was not confined a broker, or a banker, or a lawyer,
or
occasionally a successful
to What was on my employer's
.

addition

sells retail.

course—

rate of

celerated

will discuss risks with you. Do net
compare

per¬
name

Z MIAMI, Fla.—William F. Cleve¬
infantile paralysis by seeking Fox, Edward D. Guenther, Albert mond D. Fraley, Dallas F. Givens,
the best doctor. When I beR, Peckinpaugh and Saul N. Yar- William
Houghton,
George R. land and Robert L. Berman have
You see, I did not SELL these came of age, I did not start to
Nock, Jr., and Maurice Wong .are joined the staff of Columbia Se¬
bonds to my doctor in the man- study orthopedics. I
did check mak have joined the staff of J.
curities Company, Inc. of Florida,
ner of an automobile dealer who
doctors. The result was I selected Logan & Co., 2115 Beverly Boule¬ now with Samuel B. Franklin &
3839 Biscayne Boulevard.
Dr. Royal Whitman, famous head
owns a stock of a particular make
Company, Crocker Building.
vard.
the
then
Hospital for the
car which he buys wholesale and of

A True Broker

•

likewise

one

merg¬

Anthony & R. L. Day.

ment is

months it

*f?£????.

active, well-known, listed issues.
sheet was shown the com¬
mission I was to be paid, ranging

quite

stocks

and
the

under

ford and New

of $324 billion,

Therefore, when you select your

On my

from nothing to

•

risks.

also had

containing

fairly priced, seeasoned,

say

just
results
without
knowing the risks taken to achieve
them, and very few people are
The clients'
firm owned professionally able to know these

some

does

measure

two lists—one to show
clients and the other was

some

says,

Risks and Professionals

really knew nothing about bonds.

the

So he

Tucker

Fall

The recent steel strike did not upset the apple cart. I do not
anticipate that it will necessarily trigger general inflation, al¬
though I would point out that the wage and fringe benefit settle¬

about his doctor? He accuses him

He said:

$2,000 to invest.
What of bad advice.
shall I buy?" I was in a panic. I

confidentially for

one.

have

given

"operate." Let's imagine the
patient refuses and gets well. He
is the one man in a thousand who

Loeb

histories,

survive with

doctor in San Francisco.
'"I

l ts,

little
understood likeness—that is, risk.
A doctor is faced very often with
risk decisions, such as whether to
operate or not to operate. In his
professional experience he may
decide that the patient might -4
just "might"—survive without an
operation, but is fairly certain

first

amateur

patient

days, a "bond
salesman.";

called

Stock

was,

for three brief

The

investments

not.
try
analysts.
They
would resent their patients being
amateur doctors. They would also
pity them.
to

mye¬

About

better

organizations

this

firm intends to continue its branch

than the average, but they do
I think it is because they

in 1910, when I was 10 years old;
I
was
stricken
with
crippling

polio

their

sonnel

Possibility of Inflation
should

The first security I ever bought
for anyone was for a doctor. Back

ing
of

summer

their intention

nounced

client.

Tucker,

notch

analogy between professional and

amateur medical and investment advice

period last

investment

banking firms
Anthony & Co. and
R. L. Day & Co. have jointly an¬

record high.

investment

average

".The

personal incomes for first six months

selecting their investment advisor and then do what he
says; first deal with NYSE listings and try "wonder stocks"
and "special situations" later on. Mr. Loeb believes doctors
on

trying to be amateur analysts have below

Secretary Weeks forecasts healthy prosperity for
of the year, and cites inflationary dangers. Reports

the rest

' '

(

' '

' ►

.•••

If BRANIFF AIRWAYS, Incorporated

■

Common Stock

J2.50 E'ar Value

encourage you
doctors to be amateur analysts, so

ciple that to me is very important
—that is, doctors should have se¬ I will not
give any rules about in¬
curities bought for them rather vestment. Most readers of
my book
than sold

Doctors

them.

Aanalysts

As Amateur

told that 80%

of the doc¬

seek than

Saving Time on August 21,

analysts.

"amateur"

record

clients

There is

surgeon.

tions.

of what various types

but my impression

do,

below

and
,

;!// Y

„

-/"'/ Zy'-Y ' y/:

Subscription Price to Warrant Holders

Y Y; YV/Y

•

Copies of the Prospectus may be obtained from the undersigned only
in states in tvhich the undersigned is qualified to act as a dealer in
the Prospectus may legally be distributed.

securities and in uhich

McCormick Adds

Staff

have been added to the staff of

,AT County* Medical* S^Iety.'^warl^ McCormick and Company, SecurN. J.

fully set forth in the Prospectus.

F. Eberstadt & Co.

They nard J. Moore and Philip Simon

successfully.
,

as more

$10 per

the

practice

1956,

succeed somewhat
(Special to The Financial Chronicle)
investment average.
LONG BEACH, Calif.—Orlando
They must have superior intelligence to get their medical degree C. Curtis, Donald C. First, Ber-

is that doctors

Warrants expire at

different

.a,.

Common Stock. Such

anything else. There are
rules, too, for the first
investor and the experienced in¬

these

holders of its
3:30 P.M., Eastern Daylight

Stock have been issued by the Company to

shares of Common

That
strikes me as high.
I am asked, vestor. I will be satisfied to say,
*Do doctors do better than other avoid obvious
pitfalls at first and
r.iion+c-9"
clients?" Wf>ll I knnw nf no "am
Well, T know of no am- deal with the biggest New York
ateur" analysts who make profits Stock Exchange members in the
and keep them.
It takes profes¬ biggest, best and leading stocks.
sionals to succeed in investing.
I
Later
on,
you
can
try
the
would hate to be operated on by "wonder stocks" and special situa¬

tors are amateur

Warrants evidencing rights to subscribe for

Transferable Subscription

how to invest end up learning
more about what kind of advice to

ity Building.

August 7. 1955

—

The Commercial and Financial Chronicle

(582)

Military Market Opportunities
For Commercial Air Transport
President, Resort Airlines, Inc.

ft.

market is the larggrowing single
commercial air trans¬

why

reason

with

MATS's

operation

own

38%

22d lite rat^
46%

was

traffic

1955
vear

1951^5

per

Commercial

year. ?

1955),

revenues

the

15%

per

Chartering

Should Grow

com-

the

past

months

of air

use

mit

airlift

has

grown

per-

al)0u^

100%

its

PIanned Incre3se in Air Force

the

President

the Air Force is

cause

continuing

jto expand in size up to a planned
goal of 137 Wings, and becausf

Clinton Davidson Jr;

scheduled

passenger

connection

transporta¬
with

eign

Hemisphere "in the interest of
tional

security"

recommendation

result

him

Defense

Department

Airlines

would

na¬

the largest contract carrier for the
Air Force.
•

the

that

guirements

1955

Resort

great mili¬
because all its

logistic air

of;the;Air Force

engines

and• other

the Air Force paid about $57 milto commercial

airlines.

The
•

of the military
major segments in 1955

was as follows:

grew

the

Armv

which
w»i".u

be flown

;

Navv

are

.- bic

and

Air

charters

passenger
paaaciigci

Force

uictnus

within the United States amounted
to approximately $11 million. This

1955

was

approximately $280 million,
compared to total revenues of $255

traffic

passenger

million for the largest commercial

earrier—American Airlines.

carried

was

^r§ely by the non-scheduled airlines-

Rev-

enues

Canada (called the Dewline)
pro¬
vided air freight revenues on a

S180

contract

air

should

and

continue

after it should level off, and fu¬
ture changes will be determined
by changes in the size of the U. S.
Air Force.'

'
.

The basic reason for this
growth
the development in 1954 of

was

—

was

determined that aircraft
aircraft

spare

parts,

en-

and

other expensive items of materiel
should
be
transported between

even

toetRtp*

though

the Air Force hundreds

itrnnl<4

vsrvidiAA

other

very

■

expensive

basis to

commercial

air-

New

Logistic

Air

Support

The

M.A.T.S. in 1955 flew two billion passenger miles—a volume of
j:assenger traffic about one-half
of the largest commercial airline,
were

con-

airlines at
low coach-service price of 4c
per passenger mile it would prothe

commercial

revenues

$80

In 1955 M.A.T.S. also flew
about
£00
million
ton-miles
of
air

freight,

compared

million

ton-miles

flown

commercial

gether.

Logair

"; million

Prospects in M.A.T.S

vide

approximately

Since

after next

ef its transportation as
possible to
commercial airlines.
'

about

300

all

airlines put to¬
M.A.T.S. freight were

*An

address

New

York

Mr.

and

year

Davidson

before

about

the

Logair is

In view of the continuing fast
growth in the logistic air support

system of the Air ^ Force, Resort

Airlines is negotiating for-the-ft c?
quisition of more cargo aircraft,
annual

rate

million

freight ton miles in the

fu¬
When these plans have been
consummated, Resort Airlines will
near

ture.

probably

be the world's largest
carrier even though its
operations will be 100% in the

freight

military market.

■

DC-4 and 1049 H Super
Constellation
v

the

military

and has become

military

con¬

freight

the* larg-

contract

operator
among commercial airlines for the
fonowin<* rea^o^s: o
»
cunno

t>™

•

had an obligation to provide badly
needed air transportation for the
Air *orce "dul'!nS t/le national
has

existed

Korea® InVrLmmer

«->

cargo

nirpvo-Pf
aircraft for T nnfoir* tTrK/iVA the dis¬
Logair, where
tances between Air Force stations

not

are

and

great

the

move¬

cargo
are
more
fre¬
quent and in small lots, the ideal

airplane for the transportation of
j et engines and aircraft spare
parts to Air Force bases across
the

ocean

„

the

1049H Lockheed

„

Super Constellation aircraft which

™"b|ln commercial operation

I°r
security reasons, we
baye feli that .Resort Airiines has

which

Although the Air Force believes

1957. Resort Airlines has ordered
two of these new Super Constelp
^. jaUons for delivery in May and
Certificate june 295-7 to provide logistic air

l+v p^eeonoor
g [
Scheduled Operations largely

emergency

supp0rt
suant

the

across

oceans

contracts

with

pur-

MATS,

These airplanes can be converted
within
{ew hours fr0n> cargo to
passenger interiors and vice versa.

Therefore/ Resort Airlines
coach

carr

paSsengers

can

these

T95o' Slfami duHnl"^ beS'touilst

the

$20

fastest

military

air

freight
the Air

Rcsorb Airlines^ has
on Low

concjmT w-

trated

than

the

summer

traffic,

season

Resort Airlines has apolied for the

1~\

v» r\ *

b* 4-

i/v

flown by all commercial airlines
in the U. S.
during the past year.

the

supplemental-type

year

compared to 120

P^Dlion ton miles^ flown by U. S.

has
accomplished
results:;
"

Logair combined contract freight

the

following
*

reduced

materiel.irom depots in the United
to

particular

any

P°iat

international

airlines.

MATS

and

rest

the

foreign

" "3^ be r6613!? in

total 260 million ton
miles compared to 300 million ton
miles flown by all U. S. commerc¬
ial barriers
both domestic
and

internaVion'al

lnterndtlonal-

the

Airlines

same

time

year.

granted

Resort

this

limited,
certificate at

unlimited

cer¬

tificate is granted to Northeast
Pan

American

order

operations

further,.
because air transportation makes
it possible to
ship vitally needed
States

many

Delta,
1049H

will

Super

Constellations which will be avail¬
able

handle

between. New

passenger

York

and

traffic
Miami

during the peak traffic movements
and

also

available

carry

Reducing MATS Air Freight
Flying

cargo

It is

time during the summer months.

hoped that part of the 500

million ton miles of

for the Air Force in

When' and if

peace¬

freight flown
war starts, these
.encv within a fevy. days by MATS own
airplanes will be airplanes together with the ex¬
Force bases in
the. United States
.(2) Tfie more rapid shipment M"oVr to
tor air "transportation" of
jet" en- °f aircraft engines and spare" parts iTnesTike Resort AirlinJ* tor wnn perienced pilots and operations
gines and other high priority ma- to foreign bases has reduced the
personnel
Resort
Airlines
has
omy reason? Resort
system

linking

terial.

The

most

Air

Material

Com-

out-of-service time of

combat air-

mand of the Air Force at
mand nf thp Air Fofpp at Wright
Wright

craft
cratt

Patterson

Dayton, Ohio supervises this airway system, and four commercial
airlines fly the airplanes under
long-term contract with the Air

This increases the utilization of
combat aircraft very substantially,
with the result that our Air Force
can have greater fighting power
with a smaller number of aircraft

Materiel

in tbe future.

lines

Air

Force

Command.

Base

Resort

near

Air-

awaiting
awaiting

repairs
repairs

by
ujf

5Q<*
0070.

uled

both

northern

across

and

the United

1955

the

e 0

fact

States.
In

MATS in DC-4 aircraft flvin? hetwaen

aproximately

military

market

one-half
was

for

...

that

engines

cost

engines

the

best

Francisco

and

Tokyo.

flying

an
an

average
average

Loeair

of
of

nine

hour
hours

domesticallv

Leeps
the

fighter

the

only

about

four

hours

use

Harman
Leslie

Harman, member of the

New York Stock

Exchange, passed

away on July 29.
:.v

Busines Volume
As

war

A^r Force.

and

day.

over

support operations, will be ideally
suited for immediate

day for MATS charters

the Pacific, whereas MATS
its transport airplanes in

air

thoroughly trained in logistic air

a Qay on i*oga,r d°me:mcally and
13 hours

Resort, Flying Tiger, and Slick

? a ed

$200,000 apiece. For example, the
jet

San

Resort Airlines keeps its
AirlineskeeDs itsairolane
airplanes

across

the

basis

Airlines ca"rfcf a^toad1o%,uSS?t?an
P y
% larger tnan

largest contract oo(3) Air transportation has reera tor on
Logair, and it provides duced the size of aircraft engines
the
long-haul
four-engine
air and
spare
parts
inventory retransportation on a daily sched-.
quirements bv 50%. The import-

Society

of Security AnaL-uts, New York City, July 24, 1956.

growing segment
market

mil-

year.

amounts

$24

construction

southern routes
fbe

military freight
will continue to

policy of logistic air
support during the past two years

new

continue

the

commercial

centrate

market

ton miles

Savings

(1) The number of foreign air
depots has been reduced and will

and National Airlines.

MATS contract and charter busi¬
ness is running 80 million irei

aircraft

parts.

ke.t is declining and will dry

•

Airlines decided to

xxesort

est :

• j.

that

transportation
rise sharply.

is
nearing completion,
this segment of the military mar-

lion.

Air Force's own airline which the
Defense Department and Congress
Lave asked to subcontract as much

lx this passenger traffic

prom"

'it

Dewline

tracted

the

total revenue ton mile traffic (ineluding passenger) of Northeast

ments

but

tary Air Transport Service

Freight and Passenger

the during the next onn months is • right to fly an unlimited number
12
" i
eAha/)niaj' +«
#1
great,time saved by air transport scheduled to fly 200 million ton of flights from the midle of De4-:r\
^P11^ Permit a large* reduction ri^68
.air freigbt compared to cember to the middle of April and
°f lnventories of jet engines and 180 million ton miles of freight to fly only on weekends during
$.•

lines

Air

large

future

___i

that

millions of dollars -because
v ~7~™w

Lon in terms of commercial charfar prices was flown by the Mili-

;

Airlines.

greater

f"^ac6 support would actually

save

The Distant Early
Warning con¬
struction
proj ect
in
Northern

transporta-

—

times

that the DC-4 is the ideal

a new logistic system by the Air
Materiel Command of the. Air
Forge. .After an exhaustive study
over a period of several
years, it

American

more fighting
That is why it is be¬
military
passenger
transportation will decline in the

lieved

sharply until 1958. There¬

actually received by com¬
mercial airlines for military trans3;ortation in 1955 were approxi¬
mately $100 million.
The other
million

rise

business

four

over

air

Military air freight contract
charter
to

^teacfofim Tucks31 tatnfjnd

Civil air movement charters for

for

as much
50% during the next 12 months.

the freight traf¬

MATS gave commercial carriers -Jon. mile by air appears to be
contract and charter revenues of higher than cost by surface trans- mjlitarv market is the largest and certificate for this route for which
^
V *- it has applied. Since the winter
aPProxima^ely $40 million, which portation.
It was believed that
®
market for season, traffic between New York
logistic air support in place of afr-transportation.
was mostly passenger,
and Florida is very much

highf

grow.

military market
transportation that could
by commercial airlines

Major Military Market Segments .boats,

material
between
Air
jjoree bases, and this defense need
The

Logair freight
over
100% last

increased

gines,

The breakdown
market by

re-

priority

is cont'^ning to

military market is
provide^
largely by the Air Force. In 1965
lion

capacity to the transportation
iet

...

The

Navy paid about $18 million.

g&S*AWtaST«2OT5
•its

traffic

"All-Cargo" airlines de-

the military market are Seaboard
& Western, and California-East¬
ern
Aviation, Resort Airlines is

tary significance
capacity could be devoted to de¬
fense
transportation
during
a
3?eriod of emergency without ad¬
versely
affecting
the
domestic
economy.

year and should increase

declines.

military establishment with

machinery.

with active markets in their stocks
which derive their profits from

all-ex-

tours to overseas and1 forpoints
in
the ; W e s t er n

pense

of a trend in national
securlty P°hcy toward maintainless manpower and

such

major portion of-their revenues and all of their profits from
military contract and charter fly¬
ing.
Other commercial airlines

engage

tion

ing

the

large

fic of Seaboard & Western. >It is
two-thirds as large as the

future, the rapid
growth of Logair should1 make up

rive

Certificate

tions to its air freight routes This

These

Board

issue

civil
air movement
passenger
charters and Dewline
freight contract business will dein

and expects to increase its traffic

by* surface transportation.
It
is also adding more and more sta-

Although

same

Wings are being modernized
jet aircraft whose engines
require more frequent overhaul-

mentioned

reasons

the

these

for

theCivilAero-

Airlines.

States directed

nautic

the

times

is .about

with

All Cargo Airlines in Military
Market
*
•• •
•

United

the

Riddle

and

for

grow

below.

which

competition with Eastern Airlines

The logistic air support will re¬

cline

transportation rev¬
"All-Cargo" certifi¬
cated airlines, in which there is
a
large stock-market interest —
Slick Airways, Flying Tiger Line,

last 12 months

that

total

time,

between New York and Miami in

$109 million.

of the

enues

military mar¬
ket during the
is

the

capacity to the

rate

devoted

annual

^r^nes'has 136001116

has

50 million ton miles at tne
present

°00' ^"^Pai'ed tq the total airlift inent'as "one of the leading apa
certiricate
cost of $40,600,000.
• .
plicants for a certificate to flv
to fly

100%. In the future the passenger jnS and are much larger in size.
The $100 million of military charter business for MATS is like- The Air Force is
continuing: to
revenues
actually
received
in 4y to decline but the freight char- screen its materiel and selecting
1955 was about four times as large ter business should
continue to more items to ship by air instead

the;

has increased its volume

business

freight

The

inventories

traffic

over¬

transportation will

eng^nes

one yeai

aircraft engines.

reduction

^ese

will

Force

14,134

being

quire an increase in military air
transportation through 1958 be-

year.

Why Military Freight

22c

by $38,000,000.

Air

seas

freight—has been growing at the

over

provide

it would

duced

♦

rate

can

of these engines is now

airline traffic—both passenger and

tracts and charters with MATS in

merical

Resort

name

The freight

year.

1951-

Military transportation carried
by commercial airlines under con-

scheduled air¬
line

54 % above the previous

was

contracted to commercial airlines
at 20c per ton-mile (commercial

fastest

The

*ace transportation, the inventory

freight charges averaged

The military

portation.

Flying Tiger Line and by Slick
Airways last year.
Resort -Air¬
lines freight traffic is over three

Since these

gines

wS*i4%ihowThettnrevious

12 months 206 million ton miles compared
to 180 million ton miles of freight flown by all commercial
air lines in U. S. during 1955. Mr. Davidson compares the
DC-4 to 1049 H Lockheed Super Constellation aircraft.

and

volume of business carried
by the

for

military freight- will
continue to grow rapidly.
;

per

and expected reduction in freight ton miles flown

uled to fly in next

£st

en-

be flowh back and forth
across the ocean in, a few days
The fast growth of the military compared to many weeks by sur-

market

1955

by M.A.T.S. for economy reasons. Explains Air Force air
freight system, i. e., Logair, utilizes four commercial air lines
under long-term contracts to link U. S. air bases, and is sched¬

market for

for overhauling.

quirement for passenger tiransportationy however, is expected to
decline in the future, whereas the

year, and during the period
55 the rate of growth was

Air

saving policy of logistic air support, planned increase in

Airlines

ing statistics. The passenger traf¬
fic of jMATS's own operation in

Prospect for commercial procurement of military air freight
contract and charter transportation to continue to rise sharply,
until 1958 is based by Mr. Davidson upon the new moneyForce size,

plane we have at foreign bases—
the F-100—during tne period tx.at
these planes will be assigned
abroad will require 3,000 changes

passenger transportation and onehalf for freight. The military re-

market is indicated by the follow-

By CLINTON DAVIDSON, JR.*

Thursday, August 9, 1956

...

result of the rapid growth
military air freight market
during the past two years, Resort
a

in the

.km-** V.
James

' "

Campbell

Campbell,

associated

with H. C. Wainwright & Co., New

York City, has passed away.

.Volume 184

Number 5558... The Commercial and Financial
Chronicle

(583)

Crisis, Role oi Consumption
And the Pill-Taking Trend

Ahead

nerve

Suez

the News
of
'

unexpected events do

continuously. The fact
in demand undoubtedly makes the
Secretary feel good. For more than three years

has, of

course, done some

During

the

fight

extended

months,

the majority of

their hands at

were

his

employed; but

retailers

less

ers.

t urers
Roger W. Babson

have

sales

and

Word

expected events"

cause

Some

are

not

go to a

and

bearish.

used

how

their

eliminate

very bullish, such as the
sudden
adjournment
of

without

could be benefited

real

breakfast."
most

healthy
dinners

break"

the

lunches;
or

by the regular

while

prosperous. We

Let

the

old

Even

tistics

word

pills which are being
used today—not by sick people—<
but

those

who

the

employed in
factories, retail stores, and offices.
The following figures have been

further remind readers of

question:

'diet'

read

"How does
when

The

Washington.

off?"

Zile

van

Janney, Dulles Branch
LANCASTER,

says:

Street

about 400

^opened'

North

Prosper N. Hill.

tons of barbiturates

under

total issue of $7,500,000)

Company

Trust Certificates, Series N

(Philadelphia Plan)
To

$117,000 semi-annually November 15, 1956 to May 15, 1971, inclusive

mature

guaranteed unconditionally

of principal and dividends by endorsement

as to payment

by The Delaware, Lackawanna and Western Railroad Company.

(Special to The Financial Chronicle)

Santa Monica Boulevard.

Priced

yield 3.50% to 3.875%, according to maturity

Issuance and sale

of these Certificates are subject to authorization by the Interstate Commerce Commission,
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
of the undersigned and other dealers as may lawfully offer these securities in such State.

such

corporated,

(Special to The Financial Chronicle)

now

associated

Securities

with

Corporation.

Whitehall

HALSEY, STUART & CO. INC.

Blackstone.

FREEMAN &, COMPANY

R. W. PRESSPRICH & CO.

McDaniel Lewis Adds
GREENSBORO, N. C.—E. Kemp

McMASTER HUTCHINSON &. CO.

SHEARSON, HAMMILL &. CO.

Reede has been added to the staff
of McDaniel Lewis &
son

Building.

Co., Jeffer¬
,

;

August 9, 1956.

■

'
a

Duke

the management of

Delaware, Lackawanna and Western

3%% Equipment

•

Pa. —Janney,

Co., Inc. has

office

Each year we dose ourselves with

Railroad

the

leave

are

$3,510,000

ritt &

MIAMI, Fla.—Graham N. Shaw

you
can¬

not

But consider the following sta¬

(Second and Final installment of

BEVERLY HILLS, Calif.—Mildred S.
Carroll has joined
the
staff of T. R. Peirsol & Co., 9645

With Whitehall Sees.

hurried

keep

suppers may

alive, but not

Astounding Statistics

illustration

in mind.

Joins T. R. Peirsol

444

na¬

well-being

more good food.
Coffee
will not take the place of
oatmeal;
ice cream sodas will not serve for

apparent development in this line:
The milk and sugar are real
food;
but the coffee is only a

"coffee

as our own

eating of

home

well

branch

FRESNO, Calif. — Helen F.
Lewis has been added to the staff
of
Mutual Fund Associates, In¬

King Mer¬
Co., Inc., Chamber of Com¬
Building.

Surely the prosperity of the
tion

Dulles

compro¬

has joined the staff of

merce

;

Importance of Good Food

Service

of what I had

With Mutual Fund Assoc.
Crum

the

troubles.

are

unnecessarily by wageworkers, many of whom leave

The

physician for a"check-up"

learn

MIAMI, Fla.— James H.

not

Those depending upon such should

Hyde of the U. S. Public Health

The

Joins King Merritt

installment—may

No only
tempor¬
arily, but it is a dangerous and
unnatural way to get free from
pain, fatigue, and other troubles.

supplied by Dr. Henry

To be

(Special to The Financial Chronicle)

pills—like

such artificial stimulants.
does their use serve only

in¬

Investors

tian Government is

f
Don't get the impression from this that the
Secretary is always
going around town praying. In his appearance he is not in the
slightest a ministerial man. He is, instead, a big six
footer, hand¬
some man,
invariably pleasant and with a reaidy laugh.
I have followed him rather
closely to see if steadfast principles
could exist in politics. If he should be
sustained it might work a
healthy change over all national government. Others might be em¬
boldened to try principles once.

Suberlv

Means

such

dangerous
for
wageworkers, consumers, or re¬
tailers to depend too much upon

the Suez Canal by the new Egyp¬

Indeed, at President Eisenhower's first Cabinet
meeting, he
asked Benson to offer a prayer and ever since
every one of these
meetings is opened with either a silent or local prayer,

Roy H.

This

however,

The recent sudden taking over of

blessing.

His staff meetings are
always opened with a prayer and members
the staff, of various
denominations, have learned to offer the
prayer if called upon.
,
V

and

It,

Although I am an optimist on
oils, chemicals, and certain other
groups of stocks, yet I have con¬
tinually kept in mind that some
"unexpected event" may at any
time happen.
I wrote a column
on this subject a few weeks ago.

Martinez

employment

been

quite spiritual.
things are working out, Benson will undoubtedly
attribute his success to prayer. When the most hard-boiled Senator
or Congressman has
lunch with him in his private dining room at
the Department of Agriculture, he will
invariably ask the

All

taking

was

have become connected with King
Merritt & Co., Inc., 24 Julia Street.

buy

stimu¬

be harmful if
properly controlled.

the

one

these

—

way

(Special to The Financial Chronicle)

the political
The President told him that he had received a mandate to
restore the people's belief in the
integrity of government and he

JACKSONVILLE, Fid.—Francis

done

courage

All

get on with scant and hurried
tempo¬
latter has been greatly aided by
rary
stimulant lasting at most meals any more than a furnace
can
photography, color'printing, radio; one-half hour. Those
provide power without suf¬
working on
and now TV.
Unless something
continuous-line
production—who ficient coal or oil.
unexpected happens to shake con¬ must keep up with the
speed of
Although girls' beautiful com¬
fidence, retail sales will be further the bells
often
use
dexedrine plexions are out of my field, yet
stimulated by air conditioning and
pills.
These tend to keep one I am told "on authority" that the
.self-service.
Some day a little awake and
supply "pep."
They money spent on cosmetics Would
oxygen will be fed into air-con¬ don't work with all
people who give far more rosy cheeks if spent
ditioning systems, which will be a really need better meals and more on more good
food, fresh air, pure
great blessing to all.
sleep.
drinking water—with more sleep.

game.

Two With King Merritt

un¬

depression.

kept up by extensive
local and national advertising. The

he de¬

price supports he had to
set the supports for this,
year's crops at pretty close to the 90%
mark. Also, he had to accept the soil bank
by which farmers are
to be paid to take land
definitely out of production until the huge
surpluses which the Government has accumulated can be
disposed
of. The Democrats
charge that this is a deliberate Republican plan
to buy farm votes in the forthcoming
campaign. And it is undoubtedly that, but the Democrats in Congress were as much for the
soil bank as were the Republicans.
However, Benson has held onto the fundamentals of his prin¬
ciples which may serve to straighten out the so-called farm
prob¬
lem to a better position thah it has been in the
past 30 or more yearSi.

recent

—so-called—turns downward

Retail

Eisenhower
offered it to him. He explained that he was a
clergyman and he
doubted very seriously that this would mix with

some

a c

man-

Good Wages and Advertising

before, he is unique in the political give and
Washington. An apostle of the Morman church with spirit¬

As I have said Benson has been forced to make
mises. In order to hold onto the flexible

The

can

them

goods.

buying

small

religion,"

wageworkers and retail sales are Congress until next
January.
further reduced, — the "vicious
I, however, wish to refer this
circle." Hence, the business cycle week to
"pills" which are being

til

As I have written

our

The

give pills,
they enter

vestments, Suez Canal stock, why
could it not be done to many other
"blue chips"?
However, all "un¬

begin to
lay off their

years

leadership over more than a million fellow Mormons,
murred at taken the agricultural
post when President

this

then

of decline. The
Republican politicians have concluded that Benson must have been
right. They are looking over and trying to erase remarks
they
have made about him and
asking that he come into their districts
to campaign for them. It
begins to look as though he will be one
of the most popular Republican
campaigners.

The

living in

oldest and most conservative

buy

from

manufactur¬

Now, however, in spite of the predictions of Benson's
critics,

thought this

now

Whatever

stfore.

to
as

Such pills would
keep
on their aching feet

What

Egyptian Government. These in¬
vestors are asking themselves: If

buying, then

President Eisenhower vetoed the bill and
subsequently got farm
legislation more to Benson's liking. At this
time, though, Benson's
stock among Republicans was at a low ebb.

take of

continue

gin to restrict

ual

are

The

nationality,
we
are
brothers
together. economically.
Every investor in the world has
lost; money by this act of the

husbands

when you be¬

name.

upturn, after eight

"We
world.

color,*

con¬

in addition to the
high¬
balls
and
doses of whiskey
or
brandy taken regularly at home.

retail

may

prepara¬

a supermarket

customers

give

lants

now

and

•

tonnage

longer

few

hours..

high,
well,

will

to have turned.
Benson finally and
apparently definitely won his right that flexible price
supports
ranging from 75 to 90% of parity be adopted in the
place of the
rigid 90% price supports. He won this fight in
1954, but before
the flexible supports could get into
operation, the Congress just
adjourned made a vigorous effort to restore the rigid
supports.
Congress this year originally, in fact, passed legislation
calling
for the restoration of the
rigid 90% supports. At Benson's urging

farm prices have taken

and

They frequently expressed the hope that he
Carlisle Bargeron
would resign, some of them even demanded
it.
Lacking his resignation it was their fervent hope that he would
be shelved during the campaign.

}

them

prosperity

inclined to throw
of

step
to

the store!

bearish—as in

other

some

free,

these good days this sudden event
caused several; billion dollars to

retail sales

all

the mention

But the tide seems

present

remain

in his posi¬

farm legislation
period of several
the Republicans in

stores: So long

over

.over

both House and Senate
up

men

depends be 'knocked off the value of oil
upon the consumers, or customers, stocks .and other
internationallyof your local
owned
securities
within
a

bending but nothing

like to the extent that other
tion would have done.

which

tremendous.

continually stressed

this column that the continuation

him but the demands from
Republican members
Congress that he unbend from his principles
been

have

can

this

by tired mothers

final

he has been waging a
fight almost alone. Presi¬
dent Eisenhower has
steadfastly stood back of

compromise

and

tory to shopping at

this instance—or bullish effect.

that he is

and

Much
sumed

occur

aspirin made into 19 bil¬

pills sold.

authority praises and cites the vitally
important economic role of consumption; deplores
increasing
pill-consumption for artificial stimulus by the American popu¬
lace; and finds in the Suez nationalization further proof that

lion five-grain tablets!
In addi¬
tion, there are billions of laxative

Well known investment

One of the oustanding barnstormers in the
forthcoming Repulican campaign
apparently is to be Secretary of Agriculture Ezra
Benson. He has been
vacationing for the past month in Canada
but the
understanding is that from about the middle of August
he will be on the road

drug), 34 tons of ampheta¬
'^ep-up" drug, and 7,000

mine

tons of

By ROGER W. BABSON

By CARLISLE BARGERON

The Commercial and Financial Chronicle.
12

Thursday, August 9, 1956

(584)
..u:

■'

Government and the

Again we'>}iaYe.,?uh?r4-h?a4^-

f H- I t! f '

nomic problem, namely that of re¬
storing and broadening the flow
of private mortgage funds after
the salvage operation was well in
hand.
The original FHA was as
devoid of ideology as that; and its

Mortgage Business
r

COLEAN*

Bv MILES L.

■'

•Washington, D. C.

Colean shews hov/

;

The

business is conpolitical atmosphere,

ducted

& •••'■

holders in mortgages
brought in their wake severe sta¬

mortgage ac¬

fected

■

statutory

especially is

the
of urban

true in

mort¬

Fed¬

MUeS L. Colean

Congressional visitations nave docome
something to watch wit
trepidation as tn
hurricanes of
our eastern
sea¬
board.
;' r_
: :• i >
I know of no

Invitation

the

with

Federal

ior

Government

ducer

but

government or the
pressure on government,
by

business of lending on
—

sooner

wh£h ^ e,co,me ir\ a?y
first annpar!?^J ' -n fF' made its
president
wn«Lln f
°*
event

evident

the

mortgage edifice

people's

co-

clearly evi¬

was

those who thought of govintervention

back firmly

A Legal Abstraction
begin with, the mortgage
a legal abstraction, as inthe concept of property

itself is

rights of which it is a derivitive.
The instruments with which the
mortgage banker deals are rooted
in a tradition so remote as to be

The mortgage itself
and
the practices related to
it
embody a long series of adaptations to changing economic needs
and social attitudes. Unfortunate-

lost in time.

becomes| the best guaranty for
successful enterprise.
capitalist, the individual, and
The third element is freedom of
banker are cogs in the wheel enterprise. The ownership of cap0f free enterprise. The capitalist ital goods may rest with a group
js
driving force; the people an or with an individual. Enterprisjntegral and component part; the ers are free to use their private
banker is the keeper, lender, and property to reap profits in whatjssuer Qf tbe necessary finances in ever fields they may venture. In

means

its track and

^building both ? a new, system each category. Their ability
a

The

FHA,

first group,
Uu'

™

can

thelSpte
.

to doing so, they assume a risk of the
:
function and effectively coexist loss of their investment as well as
people .were .in .tne -constitutes the very foundation;of the prospect of ^unlimited gain,

and^their running war— .our way of life, which -- ic .-tiip. No paternalistic government:■ deour
whirh is tile Nn natpmoUcfi/.
j-'
way of life,
mainstay of banking and Amerl^" termines their objective. ^T h e y
^
5?,
£2 mainstay/ of \ ba

+ue ^
-

government
ad
every family in the
.,

and, could,

should

paper copy

the

Federal

orthodox ■ enough in
They had considerable
precedent not only in the Federal
Reserve System but in a variety

conHict

brought

offered'

all

the

eVStPrnc

the

over>

shocks

rrnmhlpd

sale price of their

products

while

Wages Under Capitalism

capitalism

nurse back to health^
prosperity
other
countries

employing less effective systems.
America has not only offered a
steadily growing standard of liv-

the sup-

and public

fnr

thom

:
>

have helped
an(j

•

Mnrp-

+ r\

are
ers are employed

at an agreed
generally remains

which

wage,

4L«

ah***

^he fourth element is the wage
system. Owners of capital assume
the risks of their business, but
they also absorb whatever profits
may have been made. Their workers

advo- ingDossjhlp people but has made
to all its
cure'UforUUaU l1 P°ssible for them" to "own^ the

compromises^

cates of direct lending

housing

the nature and

tures.

othpr

porters of FHA into a succession

and

personnel is necessary, determine
;

wjthstooc]

National Housing

the same bed with public housing,
This

limited in

were

product jor service, or make whatever commitments may be necessary for successful business ven-

As late as 1945, the then
Housing
Commissioner

Agency.

may produce as employ whatever
little or as much
as they ; wish,

„

During difficult times, such as
the depression years and the two
wrori^ Wars, American capitalism

right up to the

wartime

" V .. '

;
Performance of American

Capitalism
■

the forced unipn of the two jg oups
in

capitalism.

can capitalism.
V ^

by. grant

subsidy, give
nation a ^ood house, niade news-

character.

scope

getting the old economic sys-

and

„r

The first steps

methods, aims,

^he

and President plainly^expressed his reservations
became
break in the
about being kept permanently in

dent.

aration*for it.

under

Hoover—before

-: and o b j e ctives. It is. a people's capitalism,

or banker, constantly tries
to improve his product or Service,
lower his costs,rand expand;his
market. If he succeeds, he is rewarded
in ? return
by
profits.
Therefore, this incentive for profit

any

system

ordination

•

Dorothy Takosh

those who welcomed it as a means

take

steps to overcome, or rather by¬
pass, the obstacles created by state
law. The mortgage collapse of the
early 1930's gave a sense of ur¬
gency
to a trend which must.

recognized both
in the practice of mortgage bank¬
ing and in the educational prep-

dwarf

stronger and a more

cleavage existed in the
early years of the New Deal be-

ized economy was an invitation to

fact that must be

deed

now,

livelihood.

of g oods for
profit. They

ideal society.. It may be forgotten

tween

Bypass

direct role in the creation of ah

Mainspring

Capitalism counts
upon man's inherent desire for
personal profits as the most powerful
incentive
to - production.
Thus the enterpriser, be he pro-

at work .'to give gov¬

were

the

private
property and
the production

because' it

ernment

motive. The mainspring of our
capitalistic system of private.enterprise is the expectation of private gain—private gain in a measure far greater than that of mere

the

ownership

or
no

long, .however, be¬
indirect .and impersonal

the

Profit

The second element is the profit

are

other

mortgages. The essentially legal¬
istic nature of the business is a

based

tionship as embodied in FHA was
seriously
adulterated. V Strong

them, of the private mortlen(jing institutions—to bring
real
estate
financing into tune
with the imperatives of an urban¬

something else) or that is
frequently the subject of

■

persons

and it had

Both

ble.

concept of the governmental rela¬

gage

government restraints, directives,
and incentives (that often turn out

■

its pre¬

not

was

tern

form-of economic

utilities—that is more beset

than isthls

depends, should be owned by the
people as a whole.

^Jit- *

It may safely be said that the
failure of the statestaiiure
states—and, along

activity in this country—and I do
not exclude agriculture or public

between
groups,

uals.

which; to be efficient,had to have
ample and dependable sources of

about the same

source

Banking and American Capitaljuaniviug oiiu ninencaii v_,apiiai-

relationships with individ¬

forces

has brought

pressure

ernment

—,

classes

mortgage system badly adapt-,

£ credit.

capitalism.

can

government's posi¬
kept remote; it made no

distinction
direct

paid

finance; and the elements comprising resourceful Ameri¬

The

tion was

fore

spectacular changes in the invest¬
ment climate, and where, annually,•
■

who

borrowers

miums.

broadening
housing market and the require^
tnents
of
a
building* Industry

eral, as i well
as
state, legislation

the

ed to the demands of a

gage finance,
where the
force

and

residential and
farm

pointed out the Interrelationship of banking and
American capitalism, the functions. performed by exchange

the

sur¬

veillance. It

areas

loan-to-

Takosh

ing and a sound piece of residen- ism—what do we mean by that?
tial property. Though the device
Banking and capitalism • are the
was
created by government, its elements that form the cadre of
support was to come solely from
our economic
those who benefited from it, and
system. They
any profit ultimately accrued to.
are
insepara-

lending and in
the ratio of mortgage investments
to total assets. Such restrictions
satisfied the punitive disposition
of legislators, but they did hothing
to remedy the caused of: hazard in
mortgage lending...And they left.

chill winds of
-

restrictions

value in mortgage

the

policy

tutory

tivity, because
all of it is af-

example.
early imprudence of lenders
placing the funds of depositors

and

of all

true

We may take another

In winning the A. P. Giannini public speaking prize, Miss

were

private

The

weather is
.

Chairman, Round Table Committee
New York Chapter, American Institute of Banking

of an agricultural instrument to
modern urban use
«•
fir
X _i_
v

usually characterized, by a low
barometer.
This heavy political

single formula
for spreading risk on a mutual
basis available to all lending in¬
stitutions and accessible
by all
borrowers with good credit stand-

and making him

mortgage

the

offered

FHA

By DOROTHY TAKOSII*
Personnel Department, The First National City Bank of New York

mortgage market a

vulnerable to political attack.
Urges him to avoid role of paid agent of a governmentalized
mortgage system, and instead work to preserve the mortgage
transaction as a free bargain between borrower and lender.

The

approach

and its
equally simple,
purpose

today's mortgage banksr finds himself

exposed with particular intensity to the drift toward a statedirected economy; reducing the efficiency of the market
machinery

Banking and American Capitalism

'busihess-like approach to an eco¬

for

constant

given

period

matter how the fortune of the en¬
offer one
fact, a whole series of;
,,d a f ''-.
of institutions with which some of
terpriser may fluctuate. The scale
the states had experimented
In alleged cures have been provided,
"J1®* dtstingu^hes thisi people s of their waees is ripterminmt at
as
special insurance programs capitalism which our American °h
o^the emDlovers^lttmivh
1916, the Federal Land Bank Svs
cssMMLsscgv.
low
,
.
although
depends
tern had been created to provide were set up to encourage smw banking system stimulates? Six a great deal employersupon; the
he
a reserve of credit for local co
priced houses, farm houses, hous- •
♦£??
strength of collective bargaining
ing in
for
",JS
system. . 7of Vhrem"p'lo"vees"the availability
operative farm loan associations" ing in outlying areas, housing tor ^on y1 tkls unique ./
"J* The of the. employees, the avaithnhf
workers (two programs here),
In 1932, the Federal Home Loan war ■wbrkers ltwo progra^s here);, : first is the right of the^di\ndu&l : ^ labor, and the availability of
of
7or veterans^ for slum dwellers to, own private property.- N ow capital#
Bank System, inspired by rather
:apital.
;
/ ;■•.
*;■
those displaced from slums,
The fifth element is competithan closely modeled < after its
forerunner in the farm area ' was - for men in service, and .now for
co^umer
tion, the device, which acts as ah
old folks; also to promote
co-.
organized • to , provide
reserve
autOmaUc regulator ol capitalism.

social ills, FHA had to
In

also.

"b"

otl

ISM

Ld^toe avaiTabm^

ind

...

«S ,v««^ f^LU

_goods^ cap^l

credit >facilities for savings insti

operatives

tutions; and, a little later provi
plete—the butterfly always car- sion was made for the chartering

and

prefabricatedvs.umer S°ocls are usea to sausiy

ly the adaptations are never com-,

UJ1U

nxv-xf

HIV

Uiiiivu k,v* ,ivvt

coon

from which it has

of Federal Savings and Loan As

avoid asking for

sociations—free from many of
inhibitions of state charter^
sociations.v , ^
^ '

tions, and probably a

the

d"ast^ P

thing^

vented^e^the orfgkiariimUed
x

^1«1

government

principles and

evolved

many

states

the

idea

with

alert

eye

one

covering

one

two crop inter¬
recouping from a

vals—to permit

principal of the debt

over

the

causes^ofTrouble!"the
regular amortization
of

f^amptton period .^twuajly prince
of

state.

the

consequence,

ggis gg* a

«.

„

sonably long period of time. Both private market mechanism but as
tnnl fnr Hirf»ntincr and r>nr»trniiint*
for Hirerting anri controlling
institutions, despite the despair
the flow of funds to meet current
amid which they began their mis•vocial and nolitical objectives
sions, ended by making a profit
One
for the government—an eventualapproach was that it didn't work.
repossession — and, incidentally, ity no longer considered imporThe
administrative processes
of
raising the price of money to the tant, if indeed appropriate, to a
Such a consideration has little applicability
to urban property. Yet there it is,
adding greatly to the lender's risk
of loss and increasing the cost' of
temporary

Setback.

borrower

and

availability.

portant

decreasing

its

Here we have an im¬

defect in the adaptation

^i^^^Xpian

next
x-1-1 •

talk_by

Mr.

Colean

lea's

ence,

before

significant

mortgage
Federal

insurance

Housing

step*

was

the the establishment Of

Association of AmerSecond Annual Educators Confer¬
Boulder, Colo., July 17, 1956.
Bankers

became

System of

under

the

Administration.

ficient

involved

n0t

the

functioning' was: impossi-

graaljf*rt°JherS ap"-

raise the prices to a point profit;
where
the Producers are assured a

the Producers are assured a profit;
ap(1r -in--fblS ..give and take, 4he
this give and take, 4he
?
-

:—

peared too hazardous or too cumrvQiroH trvn hc7irHnnf
Continued on page 39

Functions of Exchange and

em-

Finance

;

from

aa^e'

socialism, although they approve
of the ownership of private prop-

Pf^duced in large quanimes and
quantities
distributed* over a wide area, capda!lsrn has developed a highly ef-

fjty in consumer goods contend

^ient system of banking and fi-

other twiiunm; sysiems such
economic systems sucn

^ the means of production capi- nance. To introduce even greater

tal. g°ods» as 'well as the owner- flexibility, paper instruments such
skip uP°n which this production as personai checks, promissory
^An

address

Takosh,

Miss

....

Many of the programs could

ble.

competition of the CQnsumers to
Durchase
»tpnje
purchase the«?e goods * tends V .to
these
raise the prices to a point where

^slf to Transfer™" to Tba <*** and final element is
'
c? - «—v. iuiuuvv, iu laciii- »»» " - wj? auicm- sSSESiJrSLKAS
« u"
ln contrast to this idea, tate an exchange of goods that are

resulting procedural maze that ef-

FHA Insurance Establishment

The
'

Mortgage

FHA

governmental operation.

Property implies the right to

began!to be 1° bked upon

lack
rea-

y"WO|

and costs of labor—and it does.
Thus the competition of producers
within a given field tends to lower
^e market price, whereas, the

ownlr^hiD
banker acts as the balance wheel
banker acts lowprinff
The^ownership. of wchbusij by rai.;ne oras the balance wheel
^Jf'f'ng °r lowering the cost of

rvnnrnn

"suatly

—W,

direct appropria- r
dllVtViariria^ts^^usablTTand "or
few more I ;>
are emoloved to 'nrohave forgotten. Each of these had r
oc
Gr
to make
used bv
its separate procedures
reguia- .^
caoitel is used to
vhu, miu insurance funds/
, '
:
~' and capital is used lo
T"t".
tions, and luoui aiivv xuiiup.
/ _;
I As a good example of this, we ; r Even the Home Owners Loan'
In this panic to set up a special ttiake both possible.
...
.
..
may take one aspect of the urban
Corporation, and its parallel in
home mortgage.,
In its original stitution, the Federal Farm Mort"
! - °wnershiP of Private Property
;
j
development, of course, the mort- gage
Corporation,
which
were
Caoital
eoodd
Capital goods are usiialhT reare
usually repractical objective was lost, and
gage device was used primarily rapidly put together in 1933 and
re
de,
FHA was caught up in the de- ferred to as the means of producin
connection with
agricultural 1934 to meet the full tide of dis
,i0n
The
of such busi-,
lusion mai mere
tion- The ownership of such busi-l
land.
As a means of protecting aster, were ingenious rather than lusion that there was no limit to
IKn
a
the power r\f rtnvornmnnt to create "esses by private individuals is.
of
the
borrower
from
loss of
his revolutionary. These were eiean
what the late Don Marquis re- regarded as the foundation stone
property due to the fortuitous tic salvage operations conducted
event
of
a
crop - failure,
there on sound business Drinrinlpc ^ ferred to as the almost perfect of capitalism. Possession of such

good deal of the coemerged,
with considerable disadvantage to
its freedom of flight;
•
-

ries along a

T'V' \

Educational
Endowment
Educational-Endowment
the
-

Prizes,
Prizes,

Annua,

Mtk
-

First-

It,

stocks,
'

bonds,
-

■'

and

mort-

•

' ?age? are used wherever conven-

during
diirino
thl

notes,

...

•

"
~"""
Or ■ large-scale trans-

actions are involved.. Spreading
.

over

all

these

our

great

Volume 184

Number 5558 *The Commercial and
Financial Chronicle

(585):

^structure of credit. • Banks, stock
exchanges, and investment com-'
panies

•

tius
':

the

are

huge network of finance.

American

;

take

Sterling

clearing houses for¬

capitalism

enterprise.

That's

of life.
Capitalism is not a
deliberately planned system. It is

By PAUL EINZIG

faith in the productive activ-

111

sideration

welfare

■

his

fellow man.> No

other system has
;
rapidly- increased its produc- i /

tion .capacity, its
aggregate wealth,
raised the living standards of

Other

economic

know that

and economic

oil shares

LONIION, ;Eng. — On July 26
suddenly
developed
a

Suez
r

Land

weakness

explained

seasonal

any

wave' of

was

soon

b y
Nas-

effects
on

Cioox/ij^

Arab

London

fiscal agent, announced
Aug. 7.
Of the total, about
$130,000,000

ket,

L..e

the

be used to pay off bank loans and
for further lending operations.

to
Paul

ar.

;

Einzig

There

nationalize

the

Suez

every

the operations which were
responsible for sterling's weak-

such

were

account.

carried

out

Sept.

Bankers

Golf and

Field

the

Des

there

oil. shares

selling

inside

Day

ing

Sutro Adds

Staff

SAN
&

been

Frank D.

the

which

the

denounced

regime

for

greater

announcement.

some

pation

far

may

the

to the

Raymond

Charles

come'

affiliated

Investors,
■; vard.

3932

Tracey

measures

effect

with

minor

bloc

cost

may

„

5
'
Norman
•

B. Franklin &

;

Apart

! ;

mil-

from

additional

its

the

m o a

Harry F. Reed

York, following which he
Manager of= the trading de¬
of

1951

Reed formed
.

Dallas

Son

1955

Mr.

Rupe
In

1955.

firm, of

Dallas

the

Reed and bioan ot wnicn ne was
President

Dempsey-Tegeler Adds;
LOS ANGELES,

been

years,
Bros.

Dempsey-Tegeler & Co., 210 West

Pnnim

Seventh

Street.

''■■■■

Joins FIF Management
(Special to The Financial Chronicle)

labor.

This

f°rCe
the

the

effect

Management Corporation. He was

Denton.

formerly with Lola L. Turner.

,i 1

i**'

•

f !-• IVI

>■'

!('. -AI

being offered to the public,
Thir adverHffemenpappcars only as a matter of record.
are

not

August 7,1956

ISSUES

s'F.W

Kaiser Steel

Corporation

the

$70,000,000

First Mortgage Bonds,

crisis

Suez

the

...

Due 1976

oil

the

—

the

there

—

Communist
remain

would

for

problem of paying for
imports which WOUld no

oil

why

explains

Suez

Canal

sake

Britain

would

further

increase

the

'iy

nal.

$30v0f OvflOO-;

Promissory Notes, Due 1981

Calif.—Clifford: L.

Moore, Daniel

Austin C. Tozier, Edward G. Wil-.

liams, and William R. Wilson have
joined the staff of J. D. Creger &
Cor.; 124.North
Cor., 124 North Bright Avenue.' *■
Avenue:

centuate
spiral.

the

At the

'reduce the output
.

main

off

a-v

aC-

why
-

for

their

investments

ration

And the loss of

oil" would

cause

the

grave

Middle

The First Boston

"sterling

sterling
1

■

Need

for

NEW YORK

Investment ^

British" balance

Speedy

Corporation

deterio¬
BOSTON.

PHILADELPHIA

Securities

payments position.

of civilian goods
,.

...

For, in addition to the capi-

East oil.

This is not, however, the

reason

Ca-

time, it would

•

the

Suez

and condition* of Purchase Agree¬

the British oil companies to write

for domestlc consumption and for
export.

the

terms

that Egypt would
British-held Suez Canal
shares, it would be necessary for
pay

inflationarywages
same

the

ments

indirect

acceptance

negotiated by the undersigned, certain institutional
investors have entered into commitments to purchase
the above securities in instalments by March 31, 1953.

grave

compensation

pro-

WOUld

and

the

SuHiect

the

for

such

tal loss involved in the inadequate

.demands,

wages

the

nationalization

rein-

urgent

result

ductioi^ of. military equipment, it
giye
rise
to-, additional
-

investment,

preventing

losses that would

hundreds of
would agscarcity* of

some

PITTSBURGH

CHICAGO

SAN FRANCISCO

CLEVELAND

Decision

The outcome of the forthcoming

was.international.conference that will
'

1 ■'

-T '1 Vf.s; 'Ail X':

,(iy-,

«-.•

»'f

•

«i
*0

,t"

1;.C-

^ v

*».

»*-.■*
,|

ttS. ■

■

afK

y-o

-1

Street for

sterling.

countries

for

call-up

bargaining position of
unions.
Together with

trade

h would

...

SAN

formerly with

•

„

in Wall

was
&

Calif.—Warren

Rohrer has become affiliated with

prepared to incur military
expenditure that might amount

military

though

even

the- extent

mobilize

--•••'

in given circumstances to several
times the financial value of the

form

; :. any

t£v"V

Rhoades&

JOSE, Calif. — Roy T.
Turner is now connected with FIF

Britain the

military ; service has been negligible, should it become necessary

Company, 215.West

DeWees, Edgar H.

'<*
Loeb,:

Britain's loss

the

now

J. D.; Creger Adds/.

WHITTIER,

situa-

pessimism from

diverted

opera-

This

(Special to The Financial Chronicle)

Carl

quite

Seventh Street.

of
trading

though
a
large- part of it would probably

J. Bernard, thousands of men it
Carpol,.
William^C. gravate the existing

D.,

the

are

payments directly through the
increase of invisible imports in

Boule-

„

Egyptian

sell

Western

be¬

Calif.-^Toseph

Raymond

Manager

Coyle, J. S. Hartley, and Miph^el
Mugnolo are mow with Samuel

military

hundreds

expenditure abroad.

ANGELES,

inflationary ^effect at home, it is longer represent "sterling oil."
also bound to affect the balance

Meloy

(Special to The Financial Chronicle)

with

willing

Moreover,

was
a

maintain the continuity of their
oil output, and even if they were

whether it Will

tion

Samuel Franklin Adds
LOS

ist

the

wonder

necessary actually to apply force to ensure the freedom
of the use of this most important
way of communication/ Even-a

California

Wilshire

economic point of view. Even if
the Arab countries were able to

become

has

who

Loss of "Sterling Oil"

viewed

demonstrate mili-

li.OnS Of pounds.

have

1951

Reed

assets

oil

the

situation

necessi-

whether it will prove to

be sufficient to

Bruce

antici¬

inflationary

tary strength

(Special to The Financial Chronicle)

Hanson,

their invest¬
the world.

part

psychological

relatively

part

wonder

Suez

pend

Joins California Investors

and

1944

Mr.

Berkeley Cooke, Jr. has be¬
come ^associated" "with" Rutledge
jrVihe & Co., Inc., 80 Wall Street,
New 'York City, as manager of

many

As for sterling, it would

the

the Suez Canal crisis,
The degree of inflation will de-

Salle Street

ANGELES, Calif.

Frank

'Compensation

gravely affected by

extent

the military

tated

CHICAGO, 111.—Frank Z. 'Collings is now associated with Benjamin Lewis & Co., 135 South La

LOS

favor

the

that

tion.

operations.

in
the field. From

(Special to The Financial Chronicle)

governments,

interests.

sensitive

corrupt

ex-

Joins Benjamin Lewis
(Special to The Financial Chronicle)

re¬

Nahas

sterling is concerned, this

added to the staff of
Newman & Co., Ingra•

regime
was

present

Nasser

'20 years
perience

8340 North-

Cooke With
Rutledge Irvine

Vincent Cioffi

i'/

the

staff

Co.,

** e®.

hnngs to this
organization

C. Berkeley

'
of the "sterling oil" produced in
the Middle East, and of the prosterling and oil shares ceeds of the export of Britishcontinued
to
display
weakness produced Middle East oil to outduring the days that followed side the Sterling
Area.
Hence

Stock Exchanges.

ham Building.

point

f^.r*

from

east Second Avenue.

would be grossly inadequate and
of dubious value.
The oil com¬
panies would have to v/rite off

the

due to

has

this

trading
department.

result/would ;bfe wholesale

oil

ern

their

the

with

Manager

partment

Both

Frank D. Newman Adds
---

other

British, American and other West-

were

from
might

associated

of the

wiaely

Persia, might be

added

Edenfield

....

460. Montgomery ; Street,
members of the New York and

MIAMI, Fla.

been

Anticipation of Inflationary Effect

Co.,

San, Francisco

Iraq,

which

MIAMI, Fla.—William J. Barber, Jr. and Fred W. Wagner have

felt
be allowed to

world

expropriation

seems

well-in-

basis

between

speculative

with Sutro

now

The

ments

the

Arab

reserve

drain

move

the

interven¬
crisis

(Special to The Financial Chronicle)

political

the' gold

Burns

also

quarters

From

move.

Pasha

FRANCISCO, Calif.—Bur-

dette M. Fitch

was

some

the

and

the

become

Company, Inc., AdolTower,
as
Vice-President

phus

was

Cape

Nasser's

governments

ference

(Special to The Financial Chronicle)

1 d

drain

London

military

settle

has

Perkins

Wholesale Asset-Expropriation

knowledge of the impend-

gime

Colonel

pro-Western

view there seems to be little dif¬

Country Club.

the

table..

Reed

New

that

Egyptian

operating

Moines

indicate

formed

Association

Annual

w o u

gold

Two With Edenfield

unable to resist this pressure.

facti that

some

MOINES, Iowa—The Iow$

otherwise reduce it below danger

Egyp¬

the

And

simultaneously

its

Ca-

that

tian

hold

level.

following the example by nationalizing the oil fields, refineries
and
pipeiines.
Even
countries
with

ness

the

of pessimism

would

autumn

addi-

the

cloud

countries.

the

believe

reason

the

that

safeguard

Canal, there would develop
irresistible pressure through-

out

nal Company,

the

of his decision

Day

heavy

conference

tion

of the

announcement

April, when they offered $60,000,000 of 3V2% bonds due in 1971.

reason

jointly with

alternative"

face

confident

get away witn the nationalization

his

bonds due Sept.
14, 1956, and the remainder will

last

the

cause

that, should Egypt

mar-

form

will, retire 2%%

Investment

oil

anticipation

hours after the

will

under

came

ser,.s o'w «

T. Knox,

DES

route. Both sterling and oil shares

pro-

y i d e d
Coionel

are

planning to go into the market
with iv an
offering in excess of
$200,000,000, most of which will
be in the long-term
range, John

FieSd

;Nor is the main

explanation f divert their tankers

The Land Banks sold their first
long-term issue in many years

For this

isolation

France.- The

tional cost of transport tnat .may
have to be incurred by the oil
companies if they were forced to

pesri a e

simism.

Banks

even

crisis,

weak tendency which couid not

Large Offering

Federal

ad¬

speedy decision, failing which it
is fully prepared to take' action

weak under the influence of the

stc rling

Federal Land Banks
The

Perkins & Co., Inc.
DALLAS;* TexasHarry;tF

ana

is determined to insist

ment

the basis of inside knowledge of impending move.

pressure

Plans

arguing week after week around

■

justice.

sterling.

and the apparent culpable cupidity of the

tary operation;

by bread alone, but by the food of
the spirit, freedom,
self-respect,

liable

are

"among others, the British Govern¬

Nasser regime in sterling account operation and the selling of

systems
to
Americans live not

that

verse

Einzig emphasizes
succeed, then oil
follow suit causing

and

but also because
Should

the pound.

during September while the 24
participating .'governments
are

mankind. ,To appreciate this
fact,
one has only to observe the results

be>,

inter-

pensation prospect of; dubious, inadequate value for both the
oil and canal; inflationary consequence of even a minor mili¬

or
!

factors

pipelines would
"sterling oil" deterioration upon the British balance of pay¬
ments conceivably - amounting to several times the financial
value of the Suez Canal investment. Refers toi probable com¬

restraint, engaged

the ; competitive /
struggle for
private gain—but not without conthe

analyzing the recent weakening of sterling and oil; shares,

fields, refineries

for

of- Mr....
will;

•

the conference drag into Septem¬
ber it would add to the disturbing

and the economics of the Suez situation, Dr.
that should nationalization of the canal

unnec-

visit,

considerable

cal

a faiths Interwoven in
the
pattern of people's capitalism and
our American
banking system is

essary external

awaited /with

rather

ity of man, free of every

London V

of its effect

way

our

place_as. a..result

Dulles'

implications,
And the Suez Canal ^nsis-"

private- '■*'

American

our

Oil Prospects

an d

* •'

...

fill C■_

v*-i

,1*2* t

5
.

.usv

"-»»t

kstetn t
.

"»»*

■

•

■

.**1

V-Uv

«.

The Commercial and Financial Chronicle

(586)

elected President.
that

News About Banks

Bain

Columbia

attended

field in

Bankers

and

OFFICERS, ETC.
77''

REVISED

1925..

Vice-President

and

made

by the
New York State Banking Depart¬
ment

the

appointment of Wil¬
liam R. Brennan, Jr. to the posi¬
tion of Deputy Superintendent of
Banks, effective Aug. 2.
It

noted

was

the

York

New

"Times" of Aug. 8 that Mr. Bren¬
will head

nan

Division

new

the Department

which will super¬
vise sales finance companies and
certain employee
welfare funds
under laws enacted by the 1956
Legislature. It is added that Mr.
Brennan

Company during the past 21 years.
The bank through John B. Paddi,

charge

■■

Horace

President

# •

Bromfield,

Chemical

Vice-

Corn

Ex¬

shared

New

has

g e r s

County

Savings
of
N.

Bank

Elizabeth,
J.

Director

Nationwide
Food

Service

Inc., Chicago,
and

Fi¬

was

nancial

ViceBromfield

Horace

President of

Bank

been

Ind.,

Lafayette,

enlarged

$700,000,

from $350,000. Part of

resulted from

the increase

stock dividend of

$175,000, while an additional
$175,000, was realized by the sale

„

The

observance.

National

Mechanics

26-

$500,000, effective July 26.

",
*

•,

The

Bank

The

$300,000,
the

July

increased from $200,000
sale of $100,000 of new
♦

•

sale

amount of

National
of

With

■

" '*'7- *

Patchogue, N. Y.,
as

,7'

capital of the Peoples Na¬

announced

i.K

stock

new

Trust

the

Company

Langhorne,

about

Pa., has brought
increase in the bank's

addition of $100,000 to

capital,? $50,000 of which resuited from a stock dividend, and
$50,000 realized by the sale of
new stock, the National Manufac turers Bank of Neenah, Wis., re¬
ported a capital of $300,000 as of
June 29, compared with $200,000
prior thereto. ;

$100,000 by the Peoples

Bank

its

*77''^

capital from $200,000 to $300,000.
The enlarged capital became effective July 27.

7..

customers

July 24. He
"

73 years old.

was

invited

friends

and

who

the

Chase-Man¬

were

modeled

77*7,

77 47.-

The Directors
of
the
Clinton
Trust Company of New York, have
elected Ralph I. Horgan to mem-

•

bership

Board, it was
announced on Aug. 1, by Theodore
R. Schwarz, President. Col. Hor¬
gan is Chairman of

Horgan Indus¬
tries, Inc.; President of Ralph
Horgan, Inc.; President of the

Broadway Association, etc.
Lee

Hiaeinson

nounces

that the offering nf

$30

York

^are

per

Dieted

Pir?d;,
issue of

The

offering

stock

columns

was

July

12,

w nnn

Sirh

i aUo

has

been
of

thn

nnw

the new

in these

noted

185.

page

com-

Bank

following

agent

York:

an-

appoint-

Gordon

charge of busi-

ness

development; Wallace J. Wil-

ram,

assistant

agent,

and

Gordon

G-; Johnstone, special
aentative.

repreMr.

and

the

busi-

development
New

department, at
Agency, 64 Wall

York

street.

w,
When

Francis

..4

tne

York

Personal

for

pay

Loan

Department,

operation

The Tradesmens Bank

Company
opened
office
The

Trust

Philadelphia,

new

4th

has

downtown banking
& Chestnut Streets,

bank's

main

and

Chestnut

office

Streets,

and

lts °ther offices are at Market and
JunlPer Streets; 5614 Germantown
Avenue; 19 South 52nd Street;
Broad and Louden Streets> and
Erie Avenue and T Street- The

for

his

the

account

ihe

brought to $1,000,000,000
of installment loans

amount

Inade

Manufacturers

Trust

demand

was

recommended
as

plank for
political

both

platforms

b y

Walter

Spahr, Execu¬
Vice-:

tive

Pr e'siden

c o n

t,-

omists'

mit t

e e

Monetary

Policy.
In letters
addressed

political lead¬

Dr. Walter E. Spahr

concerned

ers

the

drafting

with

platforms,

Spahr said:
"Experience teaches

Dr.

the

that

effective way in which to
prevent the serious impairment or
destruction Of the buying power
of a currency is to make it a title
only

to, and redeemable in, a definite
amount of gold.
Experience also
teaches that a redeemable cur¬

protector of

rency is a powerful
human freedom. ...

"A large number of monetary
economists, who have spent all
or
much of their adult lives as
close students of monetary stand¬

who

and

ards

attempting

are

the ends of accuracy and

serve

the

Halsey, Stuart & Co. Inc. and general welfare, hope that there
are
offering $3,510,000 may be a sound money plank in
the
platform of the two major
Delaware, Lackawanna & Western
associates

further

1919, the original RR. Co. series N 3% % equipment
trust certificates maturing semi¬
Bank was issued by the Comp- annually Nov. 15, 1956 to May 15,
troller of the Currency. It is most 1971, inclusive.
The
certificates,
second
and
interesting to note that this charJune 23,

political parties.

final instalment of

th,e well-known
native Vir-

total issue of

scaled to yield from
ginian, the late Hon. John Skel- 3.50% to 3.875%, according to
maturity. Issuance and sale of the
ton Williams.
"Much history has been written, certificates are subject to the au¬
thorization .of the Interstate Com¬
many things have happened and
much progress has been attained merce Commission.
The entire issue is to be secured
during the last nearly four decades, and so it is with the Ameri- by the following equipment esti¬
mated to cost not less than $9,403,-

$7,500,000,

and

are

evidence

"The

charter of the American National

that

the

na¬

tional welfare will not be served
unless

well

sound

currency

plank, recommended above, is in¬
corporated in the Platform of the
Party which wins the election and,
is written into law."

With Bache & Co.
.

(Special to The Financial Chronicle)

Fla.—Wil-

PETERSBURG,

ST.

ford H. Alderman, Alfred C. Avenoso

and Fred E. Richard are now

offices at 32() chestnut street and
5th and

Deposit

National

burgh, to retire

Co.

done

for

this

community

Company; Shearson, Hammill &
Co.; and McMaster Hutchinson &

Pitts-

Central

cided that this anniversary would

most

appropriate

way

Bank

Pa.,

made

was

Mr.

by Hugh

Smith

sue-

MacBain,

Vice-President of the Mellon Na-

tional,

as was

also Mr. S_\iith.

announcement

was

The

made by Frank

Denton, Vice-Chairman of the

Bank,

according

the

which

from

meeting

Directors

Inc., 24 Federal Street,

rector.

(Special to The Financial Chronicle)

Mr. Lorber is Chairman of

the

Board

elected

Rollins

Di¬

Gulf,

Mobile

Ohio

BOSTON, Mass.—Ralph D. Jos-

Burdick din

Hunter Co., and a Director of the

teresting to its constituency in and

Chapman Adds to Staff

Republic Company, Her-*
Lorber

was

Railroad,

out of the City of Portsmouth."

Booth
Fisheries
Corp., National
Among important milestones in Foundation of Infantile
Paralysis,
the
American
National
Bank's Transportation Association of
history the following are cited: America, and Kensington Steel
1919—Immediately after organiza- Company. He is also a Director
tion, took over Bank of Ports- of the Georgia Warm Springs
mouth; 1929—Took over First Na- Foundation.
tional Bank; 1930 — Took over
'

has

become

Chapman
Street.

Mr.

„

lumbia University,

was

associated

Tjd?^?ter-t7s 1° 7s re"
building the bank re-

Joslin

sfstant Vice-President of Farmers

1940, and now again in 1956.

Bank.

modeling

subsequently

Vice-President

and

became

1944

was

now

just

completed

comprises

four

Re-

CHICAGO, 111.—Francis I. Safford

has

Lee

Higginson

South

affiliated

become

Corporation,

Salle

which

formerly with

floors,

in Hartford,

Street.

Conn7'7!

Day

was

84 State
formerly

&|Dadmun; Waddell &
Reed, Inc., and Richard J. Buck
&

Co.

Joins Reynolds Staff
(Special to The Financial Chronicle)

BOSTON,
has

Mass.

Co.,

William

the staff

—

joined

Congress

Street.

(SDecial to The Financial Chronicle)

"Originally built in 1912 by the

Inc.,

with Lang

Reynolds

Joins Le«5 Higsinson

with

associated

Co.,

Guarente

"Mr- Smith. a graduate of the Ban.k,°*
modeled
Umversity of Tennessee and Co- ports:

George

change.

the

bert J.

the

Office,

111.—At
of

Board

Central

which to commemorate this out¬
"Pittsburgh Post-1 standing event in the history of
Gazette" of July 26. As Manager the American National Bank and
of the Mellon National Farmers feel sure that it will be most inPittsburgh,

known

the

—

members of the Boston Stock Ex¬

Republic Dir.

CHICAGO,
of

Mass.

Simpson has been added to the
staff of Chace, Whiteside, West &
Winslow,

the building of this great local

July from the

Bank

BOSTON,

and

financial institution.
"The officers and directors de¬

Mellon National Bank & Trust Co.
of

happy and proud should they
be, for truly a good jbb has been
well

Chestnut Streets.
*

can

77' K7U,"7n.°7nglj;.made 777V With the New York Trust Company Bank of Portsmouth, remodeled
•Ax. Schmidt's loan, the bank an- before coming here in 1929 as as- in 1919, again in 1929, again in
^ounces

Halsey, Stuart Group
Equip. Tr. Gtfs.

Offers

quote—
"On

the rate of $35 per fine

National Bank, which will
with Bache & Co., 556 Central
400: 1,000 box cars; 100 covered
celebrate tomorrow the 37th anAvenue.
~
*
niversary of its National Bank hopper cars and 2 Diesel electric
locomotives.
Charter- HaPPy and P™ad are the
With Chace, Whiteside
Associates in the offering are—
officers> directors,, personnel,
(Special to The Financial Chronicle)
new downtown office replaces two stockholder and customers alike, R. W. Pressprich & Co.; Freeman

Mellon

Uctur-;rrTr'usdt cii'fw
tomuany
New
irust

Mamourian,

iiust

Schmidt, 41-year "Post-Gazette"
College Point machinist, this also
quote:

iiacrurc.s

John

From

The^us? ComDanvCOmPtr0ller ter..was1sif.ned
company.
national figure

01
of

„

14.

and

service.

associated with ceeded
bank's

Adams

ness

old

Wilson

A^ne Wd
in

rJr
Mr.
the

The intention of John S.
Smith,
former President of the Farmers

Montreal

New

Adams,

the

nounces

inents

bank

The

Ltock is in shares of $5 each.

The

equipped with
free parking facilities or drive-in

Broad

Comoratinn

sharesofl^iist Wormian
America
at

conditioned

their

of offices from

Contracts have been awarded for
the erection of two new banking

offices, both of which will be air-

hattan merger last year,
7

number

redeemable

are

National Com¬

It i« a^oonced bv The Chartered
Head, Long Island, N, Y., reports
*
*
*
*7
a capital as of July 23 of $244,000,
Effective June 29, the First Na- Bank of India, Australia & China,
increased from $238,000 by a stock tional Bank of Carbondale, Pa., head office, Bishopsgate, London,
dividend of $6,000.
increased its capital from $330,000 E. C. 2, that the Queen has con¬
*
*
*
to $450,000 by the sale of $120,000 ferred upon the bank a new and
Consolidating Royal Charter which
Benjamin D. Simmons, Presi- of new stock,
enlarges in certain directions the
dent of the Hardyston National*
*
*
powers and privileges which have
Bank of Hamburg, N. J. and like¬
Commemoration of the 37th an¬
been enjoyed from 1853 onwards.
wise President of Decker & Sim¬
niversary of the National Bank
One of the principal changes ef¬
mons Co., Branchville, N. J., lumCharter of the American National
fected by the new Charter pro¬
ber, fuel and feed concern, and Bank
of
Portsmouth,
Va.,
was
vides that the bank will now con¬
B. D'. Simmons Co. of Franklin, marked on June
23, with a recep- tinue
to
be
incorporated
and
N. J. and likewise an official of the tion tendered
by the bank to its
established permanently unless or
Sussex Building & Loan Co. died

tw0 additional offices in Phila"Thirty-seven years ago tomorpointed Secretary succeeding the delphia, 'one at 7508-7510 Haver- row, the American National Bank
late Kenneth C. Bell, it was an- ford Avenue, near City Line, and of Portsmouth succeeded the old
nounced on Aug. 2, by J. Stewart another at Willets Road between Bank of Portsmouth, which had
Baker, President. Mr. Palmer, a Holme Avenue and Exeter Road, played a most conspicuous part in
member of the bank's staff for Holmesburg, thus
increasing its local fiscal affairs since 1867."

ability to protect human freedom

ounce

Bank of New York, has been ap-

prior

both major political parties
by well known monetary author¬
ity. Believes parties can further
national welfare by such action
in view of redeemable currency's
upon

in gold at

until Her Majesty, Her Heirs or
inspect its newly reSuccessors shall see fit to revoke
building. As to the cele- the Charter. Hitherto the charters
Broad Street Trust Company of bration, the local paper,
ington, D. C., from 1948 to 1950.
bearing granted to the bank have been
; 77'777: 'V *
sjt
*
Philadelphia announces that the combined title "Norfolk
for limited periods of time, usually
Mortimer J. Palmer, Vice-Presi- supervisory authorities have ap- Ledger-Dispatch—The Portsmouth
30 years.
%
dent
of
The
Chase
Manhattan proved its application for opening
Star" of June 22, pointed out that:

pany

plank is urged

sound money

dollars

Bank

count.

Aeronautics Association of Wash¬

the past 38 years, was Secretary of
the Bank of the Manhattan Com¬

For Both Parlies

July 25.

Woodbury, N. J., according to the
Pittsburgh "Post-Gazette" of July

National

■

the

The First National Bank of Glen

the

4-'iR

capital of the Lafayette Na¬

tional

has

presented him with a $100
full paid-up Christmas Club Ac-

bank

been
to

77. 7.7;

v;*'77 v-*;?

in its

ceremony

Board of Mana

York,

elected

Union

stock.

change Bank

....

bank.

Spahr Recommends
Plank

Sound Money

and prevent destruction of a cur¬
♦
*
*
Sterling L. Wandeli, formerly
Personal Loan offices, 67 Broad Vice-President
rency's buying power.
of the Fidelity
The sale of $100,000 of new stock
Street.
Francis Schmidt, Jr. the Trust Company of Pittsburgh, Pa.,
by the Lincoln National Bank of
A sound money system for our
14-year-old son for whom the has become Executive Vice-Presi- Chicago, 111., has increased the
people in which United "States
loan was originally made, also dent and Cashier of the Farmers
bank's capital from
$400,000 to
Aug#

tional

7771:77

the

The

Corporation in 1946 and in 1947

marked his account "Paid in Full"

been serving as an
Assistant Counsel to the Banking

Department since April, 1955.

>.' 777;7

officer of First Boston

estate."

real

any

Vice-President, made a present of was named Vice-President of Mel- of that amount of new stock. The
the
$456 to Mr. Schmidt and Ion Bank."
increased capital became effective

has

became

buy

Frank D. Lawrence is President

before

sales and syndicate operation.

having

to Pitts¬

came

additional

2,000

over

feet of floor space without

square

burgh in 1937 with Mellon Secu¬
rities
Corporation as a director

CAPITALIZATIONS

Announcement

acquired

Bank

Farmers

entering the investment banking;

BRANCHES

NEW

the

became

Office of Mellon Bank. Mr. Mac-

CONSOLIDATIONS
NEW

Mr. Smith held

position until 1950 when the

bank

..Thursday, August 9, 1956

with

231

B. C. Morton Adds
(Special to The Financial Chronicle)

DETROIT, Mich. — Norman M.
Henning has been added to the
Co. .staff of B. C. Morton & Co., Penobscott Building.

was

Volume 184

Number 5558...

Commercial and Financial The
Chronicle

(587)

"•"•

-c

&ss--*~'

-Vj>v

&#*<»«••::..... y ~s<:;:......

IS
and Associates

isfgrowingwith
Listen to the clang of

Whisper of

new

steelwork rising high above old skylines

to the

million air conditioners and the muffled churning of

ocean

freighters in the St. Lawrence

These

are

accelerating

the
pace

to the hum of

far-flung activities of
that dazzles

young

America still growing at

Spurred

incentive of free enterprise, our nation's
growth is backed
constructive

endless stream of hew

the boldest thinker.

even

financing that enriches the opportunity of

by the

by far sighted,

every man to

better

his way of life.
In the past 12 months, Associates has
provided

over

V/i billion dollars of

automobile, industrial and personal financing to assist this American growth
pattern in widely diversified fields of industry and private endeavor.
America continues to grow

...

and proud of its contribution to that growth,

Associates grows with it.

REPORT FOR THE

FIRST SIX

MONTHS

CONDENSED

ASSETS"'"
Cash

and

CONSOLIDATED

June 30, 1956 June 30, 1955

Marketable Securities

$ 87,277,327

$ 81,146,112

Receivables:

BALANCE

SHEETS

LIABILITIES

June 30, 1956

Retail motor vehicle installment
receivables.

Wholesale

$578,409,395

motor vehicle short-

term loans.

Direct and personal installment
loans

41,678,044
27,696,421

$714,884,514?

$849,487,377
51,967,540
| 20,628,756

Less: Unearned discounts......
.......

Total receivables, net... r..
Other Assets.

44,144,624
17,506,326

$776,891,081
14,884,154

$653,233,564*
11,529,998

$879,052,562

CONSOLIDATED

67,100,654

55,851,875
37,002,943

Commercial and other receivables

CONDENSED

39,770,000
1,562,736.

July 2, 1956.
Accounts Payable, Accruals
and Reserves

30,237,643

29,705,347

Unearned Insurance Premiums.

72,754,696

......

Reserve for losses.

$352,716,100

37,500,000

Common Stock Dividend payable

$683,877,863

..,....

June 30, 1955

$435,831,400

1,875,283

Notes Payable, short-term.,.....
Term Notes due within one
year

29,258,942

28,925,709

............

Long-Term Notes

155,965,000

136,135,000

Subordinated Long-Term Notes

52,000,000

42,000,000

Capital

17,900,000

18,500,000

...

Debentures.

..........

Preferred Stock.

22,500,000

12,500,000

Common Stock

31,254,720

Surplus.......................

64,729,574

52,840,062

$879,052,562

$745,909,674

INCOME STATEMENTS

Six Months Ended

June 30, 1956 June 30, 1955

Discount, interest, premiums and
Other income.

..........

$59,449,847

$51,648,914
34,296,900

•

Operating

41,828,871

expenses

Net income before Federal income
v

tax.

$17,620,976

Provision for Federal income tax..
Net income.........

Consolidated
share

net

earnings

common

stock

$ 9,780,976
per

after

payment of preferred dividends.

7,840,000

•

$17,352,014
-

Commercial and Installment

Financing

8,540,000

$ 8,812,014

ASSOCIATES
ASSOCIATES

INVESTMENT
DISCOUNT

COMPANY

CORPORATION

and Other Subsidiaries
HOME OFFICE

SOUTH

BEND, INDIANA

The Commercial and Financial Chronicle

(588)

merger,
was
largely
com¬
mitted to defense spending,

THE MARKET... AND YOU

combined

able to

been

boost

better

STREETE

By WALLACE

the

but

business
backed

away

from the

common

civilian

its

than

its

left

♦

■

Its

the

question wide
open of whether the old high
had actually resisted a pene¬
tration

within a few
of accomplishing it
came

pennies

before the turndown.

Steels,

which had been market lead¬
ers as

settlement of the strike

progressed,
at least

subjected to

were

temporary profit-tak¬

that kept them on the;
laggards occasionally.

ing

lists of

for

Chemical stocks are

in the

being produced

now

country.

the
*

which

•

modest

The

side.

costs,

continuing shortage of
nickel has
helped Interna¬
tional Nickel post an all-time
high but without indicating
that the end is in sight since
the company is generally re¬
garded as having delayed any
price increase in the metal far
beyond the time when the
supply-demand factor dictated

if.

indicate that in three

Coppers, duces three-fourths of the
helped by some firming of the world's supply anc( is believed
domestic i price for £ the red to
have
deliberately held
metal, were able to do well. .down the price to encourage
In fact, the metals were gen¬
"the use of the metal in far
eral

when

pets

Domestic

around.
were

buying

was

oils,

too,

Dow's sales for the last fiscal
year are estimated
the
half
billion

to have hit
mark

in demand which is

offshoot

the

Suez

well ignored, conse¬
quently, the price inflation in
pretty

jitters other metal lines.

that afflicted the international

the

in :

ness

has;

supplying power to the
National Supply, the larg¬
large less-than-best grade de¬
est independent in the oil well
posits it holds in Canada not
supply business, as well as a now being worked because of
large producer of incidental the power lack.
on

was

ablexto put

better action than the

general
some
solid

backed

Sperry Hand Corp.,

rela¬

one-

third

boost

over

last

year's results.

out

float.

court

its

settlement

merits,

own

ically

the

company

becomes

automat¬
candidate

for better dividend treatment

and, with continued progress
based

the

large capital

ex¬

boosts
with

the subject of enlarging

sales

and

with the

billion

away;

billion

not

are

the amount of dividends

they

prior

far

the

Edward L. Bernays

recognition, status

legal

and

sanctions consistent with the serv¬

renders' society.

cultural

from

ing

time

It suffers

50%

over

1954 year

the results for the

for its private plane

favorable.

anything to change this
the diffi¬

overcome

confront you?

now

they

only

can

by activities of informa¬
tion and persuasion directed to
the publics on which you are de¬

overcome

Bven: mil¬

survival!

pendent' for

lion dollar volume clients are the
■victims

beneficiaries

the

general climate of Opinion* and in¬
fluence which surrounds" them.
Acceptable Service and Story,
Necessary
But

publics to
unless

way

your

you

have

and

story.

service

time

not

coincide

expressed

those of

this

necessarily

any

those

the

with

"ChronicleThey
as

are

presented

the author only.]

rather than the maintenance of an

"Professional status is therefore

implied contract: to serve so¬

ciety over and beyond all soecific
duty to client or employer in con¬
sideration of the
privileges and

society extends to the
profession."'
i, 1

protection
Let

look

present

vour

status and some problems you

profession.

Certainly

face
your

acceptable

Do you have

for your professional
code distinguishes you from other

"yes,"

financial advisers and

profession,
a

trade
As

Will

public opinion continue to
permit you to serve society, the
public interest and your own in¬
Will society permit you to
develop with the expanding econromy? Can you so plan as to en¬
sure for yourselves
a reasonably
terest?

secure

are a

the -first,

the distinguish¬

feature of your professional
practice is that by divesting your¬

ing

selves

forces

competing personal in¬
terest
you
give competent, un¬
prejudiced, responsible advice on

investment

antagonistic

and
you

adversely affect the public and
its
legislative bodies as to put
hampering curbs upon you, pos¬
sibly even legislate you out of
existence?
This despite the fact
that your continued existence is
so

essential to the financial well be¬

ing of the

public

and

the

legislation

has

al¬

broad

financial public.
Restrictive

ready been introduced in certain
states.
Misleading terminology is

being used by competitive inter¬
which try to secure invest¬

ests

business

counsel

ment

business.

you

distinguished from

Or will sub-stand¬

future?

advisers

ard

other

In my opinion the answer

them?

convert your
of thinking

cannot

you

without

actually being investment counsel.
From the legal standooint the
term

counsel"

"investment

fined by
1988

Federal statute.
the

SFC

ruled

de¬

As early
that only

„

investment in terms of the clients

interest

alone.

relation

your

this

comparable to that of

the

second,

cepted definition,
fession.

You

the

you

are

ac¬

pro¬

approximate closely

the definition of Mr. W. E. Wick-

of the
Institution of Electrical Fngipeers
enden,

former

President

of Great Britain.
Speaking of
profession's attributes, he said:
"We

may

Knowledge

place first

(science)

(skill) held

"Next is
based

♦Address

common

Body of

Art

posses¬

City,

firms

primarily engaged in

giving financial advice could call
themselves

350 firms, so

with

tered

Educational Process

this body
by

Mr.

investment

the

SEC.

of knowledge

advice

and

business

the

"investment

criteria.

are

Today

regis¬

The

law,

the giving of
bv

other indi¬

institutions

viduals

nation

title.

Qualifying,
the

primary

whose

not meet
counsel" desig¬

does

as "in¬
"investment
managers," etc., such individuals)
and organizations, due to similar¬
ity of title, are
eauated in the
public mind as being one with

vestment

Operating

advisers,"

you.

by united

Bernays before An¬
nual Meeting
of Investment Ounssl As¬
sociation of America, Harvard Club, New
York

those

however, sanctions

'.-£•"

lawyer.
As

regard,

client
doctor

your

sion and to be extended

views

the

economic monopoly.

The con¬

effort.

[The

fession do

Obviously,

helped mightily
by new government contract.,
allocations, were able to-shoW
a bit of life again but without
any great demand' centering
on
the
companies that are
largely producers of civilian
planes. Beech Aircraft, how¬
ever,
aftfer a steady down¬
trend in earnings for nearly
two
years,
seems to
have
turned something of a corner
since its June quarter state¬

usually the
Professional
Group, devoted to its common ad¬
vancement
and
its
social
duty

there

competing services, is lack¬ present situation needs analysis
in investor or public con¬ and interpretation • if you are to
today. Can your pro-, plan realistically for the future.

culties that

Aircrafts,

lag."

the

basis of good standing.

sciousness

situation and

declare.

dollar

too

1919.

experts in a particular field. Yet
it encounters difficulties in achiev¬

"Finally

other

ice it

Organization

only

professions in our increas¬
ingly complex society, yours arose
to meet the need for specialized

ing

with

relations

his

colleagues

one's

State

new—

from

we may place more or
formal Recognition of Status

cept of the professional invest¬
ment
counsel,
as
distinguished

article

dollars

Sperry,

magic level of

very

courtesy, honor

ethics, which guides the prac¬

less

counsel

dating

Standard

"Fifth,

;

sion of invest¬

follows

clients, colleagues and the public.

•Dow-Corning and Ethyl-Dow,
which aren't consolidated and

expected to make the threequarters

and

titioner

profes¬

ment

"Next

from what the social sciences term

earnings tinuing at a high level and the
Sales company's backlog is highly
are

professional group,
character, training and

Conduct based

reports are the profitable op¬
erations
of
its
subsidiaries,

good consistency.

in the current fiscal year

penditures of the oil industry level

generally, in time would bring

un¬

Will

vestment
The

ad¬

for

Qualifications

proved competence.

new

The company has had some
Sperry Rand is capable of lines
alone,
and £ industry'
large charges in recent years,
showing some growth that is sources report that the busi¬
partly to reduce its capitaliza¬ far
better
than
anything ness
tion and partly for
plane market is one of
expansion shown
by the individual com¬
and plant improvement. With
increasing growth" currently.
ponents which, incidentally,
these programs
drawing to a were thoroughly respectable Military sales have been con¬

based

they turn for

of other

by
tive newcomer in its present ment showed an increase in
prospects of good earnings for
guise since it is only starting profit of around 50%. Sales
this year although effects of
its
second
year
since the of business aircraft have been
the steel strike on the com¬
merger between Sperry Corp.
pany are still vague. The com¬ and
Remington • Rand, has increasing and the proj ections
pany, on the basis of its re¬ been
of full-year earnings would
something of a trading
ported earnings so far, is favorite with a
indicate the rather low pricegood share of
heading toward a $9-10 final the interest kindled
by its times-earnings ratio of around
result for this year,
according pending lawsuit against an¬
5-to-l. Sales for the year are
to
most
projections.
This other office machine colossus
would be in the nature of a
about which recurrent tales of. expected to run better than
run,

fessional

mission to the

Will

wisely?

The short¬

supply

oils, the theory being that any
prompted; the U. S*. Govern¬
disruption of the Near East ment
tp stimulate: the: devel¬
supplies will necessarily boost
opment of new. sources and
the demand for supplies in
International Nickel has been
this hemisphere.
working with the authorities

products,

curities.

which, along with a handful

only represented in the
has parent company's figures by

applications.

wider

* '

se¬

they do
wisely or

counsel?

dawn.

money

American

"about

ing-off stage and some esti¬
four years the earnings of
this year could be doubled.

profession

new

difficulties stemming, from

vice to the in-

mates

'A*

Business and economic experts and art, in ordering which the
anticipate an expanded American professional group has a recog¬
j
economy during the next decades. nized responsibility.
Investors will continue to put their £
"The third is a Standard of Pro¬

investment ad¬

companies, the firm
normally operates at a 30%
Motors
showed
no
more at least a modest increase and
profit before taxes and spe¬
than momentary- trading in¬
consequent benefit to profits. cial charges. Another of the
♦
*
*
terest even though .the period
arithmetical -facets that isn't
for the model changeoyers is
International
Nickel
in Dow's
official
pro¬ .reflected
*

however, are now at the level-

The

including following, steps: scope^and functions must be con*
tinually clarified, for; public; appropriate additional' legal
sanctions^ for mutual protection must bet devised; broad-scale
:research on public attitudes; public relations should be
thoroughly planned, for growth < and development in the
public interest

consid¬

weighed down by
depreciation charges
have kept profits on

unaware ness and, lack, of knowledge.
Maintaining
profession requires dynamic action, for survival and growth,

rising

overcome

public's,

erally for defense needs.

product heavily

one

alone would double the entire
amount

industrial

the

since

average

plans

Leading public relations authority notes
investment counsel must

guided

having discounted to
a
good extent the many. fa¬
vorable prospects and aren't
among
the higher yielding
started in the international
company's announced inten¬ issues around, limiting their
oils which were the hardest tion of constructing a large
appeal a bit in cautious mar¬
hit group when the going was
petrochemical plant to aug¬ kets; Dow Chemical, however,
ment its raw material supply. has
heavy.
had
reports somewhat
*

By EDWARD L. BERNAYS*

military

missiles, and' electronics gen¬

ered

Thursday, August 9, 1956

|
Investment Counsel

Looks at

even

stock capitaliza¬ the
important work it is doing
is comparatively in radar, instruments,

test of the all- tion which
the industrial modest and a shade short of
average this week, stretching the 1,500,000-share mark.
the correction phase to a full
four months, since the peak
Imperial Oil, which ranks,
was reached early last April.
among the giants of the Cana¬
Uncertainties over the Suez dian oil industry, was also in
Canal situation was the ex¬ noticeable favor, a demand
cuse
for
the
selling that that was heightened by the
any conclusive
time high in

This is in the face of

trade.
Stocks

show

The Public Relations Counsel

has

firm

Terminology

Obscured

Many of those operating under
these other designations are of the
highest
case,

competence, and
Others are not. In any

probity,

reputation.

the fact that they may opCnntini/pd

TtflCIP

Volume 184

Number 5558

The Commercial and Financial Chronicle

...

(589)

Better 4th IfUCillUl DUalllC%>9 Presnects Indicated ?ccelerate dlUIj"g the period and;
Ouertfir Business
rivapuvla inuiyilisuis

•

J—

First National City Bank

■,t

higher level of industrial

sees

duction in the remainder of 1956.

now probably declining. Neither
has
enuprnmpnt
cnanHi n a
government
spending

provided

pro-

steel

and

wage

price

exDeriencine continued heavv
experiencing connnuea neavy

"Fewer

strong

inventory

worries,
a
goods
outlook,

capital

ievel

First National City Bank

of New

York, provide better fourth
than

prospects

that

°.

the

there ,is

increases

persons
Lr
'w —w

even

...:n

against

This

—

g?'ns

solid

''i

ran

about $4

annual

rate

infla-

Frederick
Of

? e^°n°my

Williams, V. P.
Pierce, Carrison

"The cost of living made a relativelv
sharn
advanrp
in
hnth
JACKSONVILLE, Fla. —The
auveiy snarp aavance in ootn
,?adu May and June and reached a new investment business of Williams

were

for

record

from

support

66.5

the

first

time

industrial

creases

new
peaks are also indicated for personal income and re-

such

million,

while

billion, the rate did not

...

since

investment

Company

has

rison,

Wulbern,

Building.

setting,

with

continuing

mand

prices.

been

Inc.,

The

"Letter"

points

much

the

heavy

Pierce,

de-

Carrison,

and is in charge of

lines,

many

Vice-President

Wulbern,
a

department.

quar¬

that,

out

have disrupted
metal-working lines

strike

activity

may

involved,
points to
1956.

Many

which

ties

plagued

the

that

the

business dur¬

first

steel

half had
and

into

pressed

shakedown

sort

strike

steel

which

otherwise

quired

have

re¬

much longer period. The

and little difficulty
anticipated in clearing the way
new

cars,

for introduction of

'57 models

found the

N ITS romantic past,

"Slowdowns and shutdowns for

medical

val

Today, of
own

and healthful—and

even before the strike began. De¬
lays in getting steel for current
jobs
will
push
the extensive

and equipment
into the future,

thus assuring support to the econ¬

from

omy

this

important

sector

well into 1957.
«
V "With fewer inventory worries,

strong capital goods outlook,
near-capacity operations and fat¬

ter

payrolls iri the steel industry,
and
improved
business
confi¬

fourth quarter prospects
look better than before mid-year.
dence,

This

it is

has \the

only

performance

during the first six months
1956 gave the impression of

slowdown

and

areas,

important

many

some

saw

these

indicators
the
beginning
of a
general downturn. Comprehensive

the

estimates

table)

total

nation's

was

by Maine seafarers

of universal

come

was

mass

this seasonable and
treat the year

The

annual

rate

$408.5 billion. The steady ad¬
vance, from a $403.4 billion rate
in the
first quarter and
$401.9

began catch-

history

it.

And it

was

Names such,

making

quarter

time

New Jerseyite—

back

of canned tomato products,
become

has

one

industry

uses

Weirton

Steel

most

crops.

Other

and

other piquant

daily

other individual

not general or

"The

multiplying
breeders

plant

half

increase

the

yields.

expenditures

for

They

are

The tomato became
our

kingpin of

fields to

Much of what

every

health

new

any

can

name.

its

food

cost to

quality and in the quan¬

our

customers.

SEVEN

and

flavor

peak

GREAT DIVISIONS

WELDED INTO ONE COMPLETE

STEEL-MAKING

Hanna Iron Ore

resist corrosion. It takes tin plate

Products

Company

Corporation

•

plant

.*
✓

'»•

GRANT BUILDING
:*>

■

:"A

PITTSBURGH, PA.

■

Weirton

•

National Steel

The Hanna Furnace

National Mines Corporation

CORPORATION

NATIONAL STEEL

and

•

Stran-Steel Corporation •

na¬

and .consumers' pur-'
chases of non-durable goods and

STRUCTURE

Great Lakes Steel Corporation

Steel Company •

properties intact.

really steel thinly coated with tin to

2- to 3-lb. beefsteak tomato.

constant

cans,

want

you

tiny currant tomato to the giant

ranging

our

also done for almost

Enduringly strong, the "tin" can is

varieties

it is

tity wanted, at the lowest possible

canning has done for

you

proof—with

men

of all American industry.

At National Steel,

is
instantly at hand—compact, spoil-

market,

introduced

food

practically

production

goal to produce still better and better

the tomato, it has

this

and

provide steels for the better

products

agricultural and our indus¬

from

and

equipment

rich

National's role

began

tional output was largely in busi¬
ness

mass

of the

closely with customers in many

every

one

research

tomato

trial economy.

products

had opened

plate is just

steels made by National Steel.

•

first

in¬
per¬

Of course, tin

work

both

American table.
Once canning

our

major

Our

precious vitamins A and C

which the

sauce,

virtually

dipped tin plate.

specialists improved can¬

preserved in high degree in the sealed

agricultural

juice,

And

year.

Company is

supplier of both electrolytic and hot-

steel of the
soup,

the

many

It has also become, by all odds,
tomatoes,

each

make

the canning

that the

im¬

most canned cne—in the form

demanded by the discrimi¬

cans

ning methods at the same time, so

the tomato

our

versatile

and

quantities

enormous

larger, sweeter, meatier to¬

mean

can.

proved

the Rutgers, the

nearly 40 billion

ners.

to 1955's astounding

1847,

nating—and* naturally, by the can-

output of more than 50,000,000 cases

strains

vasive*

Pearson, the Moran and others came

the double!

Crosby—first "tinned" to¬
in a commercial pack 'way

matoes

justments in process during the
first half, while severe for auto¬
were

popularity.

Marglobe, the Greater Baltimore, the

Harrison

bled

and

round?

billion

dustries,

demand for

matoes,
the

From

1955, makes it clear that the ad¬

mobiles

V '

refining and
diversifying the tomato. They dou¬

final

*"?;

sauce—

swiftly

the

»'

§.

recently
first gen¬

then that the tomato began

paste

different
national prod¬
second quarter

record

•

highly perishable

answer—can

relished

the

as a vege¬

Spanish

How to meet the

nomic

even as

After that, the tomato

by the Department of Com¬
merce
and the Council of Eco¬

uct

•

into

date

rose

ing on—fast. And the problem arose:

whole

The gross
during the

catsup.

now

«ur

story.

mantel

superstitiously shunned

the 19th century.

output of goods and services, re¬

tell

•*"

erally introduced into the U.S. diet

cently revised and brought up to

Advisers,

least"—

economy

able

secret

generally expected. Fragmentary
and preliminary statistics
avail¬
of

picturesque fruit (technically

better than

was

on
' '

•'

with tin plate, the luscious tomato

No. 1 Canned Product

passed the much-heralded $400billion-a-year mark, but its first,
half

staples.

fruit, though used

$400 Billion and Still Growing

y "Not

'*5

zestfully popular

poisonous by many,

further

of the most flavorful

the structural

contracts

^ f

medie¬

it has

course,

one

—of all mealtime

shapes, plates, and.
pipe which were in short supply

things:

prescription,

business outlays
for
new
plant and equipment.
Heavy construction proj ects, oilwell drilling, and the manufac¬
ture of heavy equipment needed
on

backlog of plant

decoration.

its

lack of steel have had the great¬

impact

'''c1;'1

the familiar

tomato has been many

love token, a social outcast, a

October and November.

est

the

automobile industry also has suc¬
ceeded in reducing its inventories
of

com¬

inventories

would

"social

''V-

cutback

has

month

the

obviously been in¬

some

The

due.

was

«*'

After it teamed up

even

.•

and

over

Purchases

flated

still

economy

keel.

strike

•

today our No. 1 canned product

the remainder

of the uncertain¬

ing the first half have cleared
now

the need to catch up
a higher level of indus¬

trial production in
of

Once

■

during the
third quarter and however unfor¬
tunate its impact on the persons

Inc.
mutual funds

thought

steel

Barnett

Frederick Williams has

elected

possible* before mid-year.
"however

been

merged with that of Pierce, Car¬

4~u~

record

year

price

industry
JlllUUDt,

spread."

inventory backbone

steel

gvvtl

certainly

aisposaoie income, inis 1954-55,

Primardy

n0*

and

:wage

the

almost

pressures.

guard

AAA

will

and

year,

homebuilding or the consumer October, 1953. Wholesale prices
?a£d J? g°£
>"dustnes as *n t,ave leveled out near their peak,

record

income

many

when they were the Farm and food prices have been
of the recovery. In recovering in recent months and
recovery,
in recovering in recent montns ana
boom; while business first half June, total employment reached no longer afford an offset to ininventory a new
accumulation
in
the
*s

improved
business
confidence," according to the August
"Monthly Bank Letter" of the

the

rfee,lt
as

disposable

.
i«.

ter payrolls in

and

^ S FG

without

reflecting

~
earlier in

further emphasized by the fact

demand
aemana.

service*-

near-capacity operations and fatthe steel industrv

areas

many

than

economy

tionary

in Economy

increase

reason

generally believed and issues warning
against price inflation possibility. Perceives spread of substantial

the

consequently

Finds there is less slack in

than

economy

tail sales. There is less slack in the substantial
believed

stimulus.

Less Slack

the

ter

—

*7 "V
1
\ir' >P mh- ^' }■•»!"! .'.W •'*
The Commercial and Financial Chronicle

*jf

lfc

(590)

•?

Continued,

from

page

j-3;

-HtuJcV

•>v

porarily their balance of payments

ital

financed about 16% of total blow that vhas highly unfavorable
investment during the 'period.-tow political
consequences for the Ad-'

deficits has been small. /

As.

the-><5afseblit 'hbn-infla-

this

has

countries-

increased

and

the

can

contraction

survey

of finan-r
in Latin

figures

ministration, but once the ball is
rolling, and the country gets used
to seeing it move, it is
politically

countries

during
the
last seven years, we have found a
widespread practice of inflationary policies with their consequent

pattern

and

American

some

7, diminished

others, but here
discerned:

quick

facts

countries^ the volume of rial

exports

has

stop

it than to

let it roll.
A

effects on foreign payments; we
In. have also found a continuation of

inflation has been most acute.

difficult

taken place in the countries where

Rica, Ecuador, Honduras
Contrary to a widely held beand Venezuela, and only small in lief, inflation in Latin America;
Panama, Guatemala and Cuba,
. does
not arise solely from the
tn
pvaminp expansion of credit to the GovernCosta

was.

tionary

Latin-American Monetary
And Exchange Policies

second

explanation

Latin

many

American

that

countries,

particularly the large

ones, are at )
multiple exchange rate systems, present at a stage of development
but
with
a
strong
movement in which entrepreneurs have more
towards their simplification and drive and more projects than

1953-54, the volume of exports in
Brazil was only 79% of the 1948

nacc

„n«,

3rf

.Thursday, August 9, 1956

volume; in Argentina, 86%; and
cap-Chile, 68%. In Bolivia, the vol- eventual abolishment; we have ital and exert great pressure
uponhave
an
inflationary
ume
of experts had also con-' seen favorable terms of trade but the banks and the
government to
In
tracted, but this contraction seems shrinking export volumes; and, get easy credit.
It may be ob-:
faet> Table 1V shows that exce'3t to be due to several causes and finally, a relatively rapid growth jected that the United States'
Ji v th t has made in Cuba. that is following an anti- ribt only, or principally, to in- of production and real income
passed through this same stage of
'
prices rise stoove these of ttic cyclical policy, and the Dominican flation.
txiose
01
financed mainly with domestic development without having in¬
p/armhiip
wHptp tViprf* i^* no lnflsCountries withwhich the country
According to estimates made by capital,
flation, except during the wars,

Yn thecoimtrfes

rWinnmpnh

ment> but also> and in a very hi^h

that

^Slowet

privat^Tctor"

Sflationar?'policy'a™7iscaiand
SSf

has led

trades and

to balance

'Xh llreer

iSSSTw STSfio courrtrief in
a^pdk^^urin^Ve^S'^lven men?,

credi^

than

th?

the

Economic

usually

the

granted

tv^en

strategic

be-

importance

feeding

monetary conservative and■
expensionist
countries,
but,.the
Includes most ot the
large countries and covers about
82% of the total population of

.f^ry"lus^ wfdens
?. p£™aJL™ ,Irv
tS' SS Sb ta

Latin America. Our former state-

mucn

latter group

These8 estimates

SuanhfatiLlv^e
iarg®r;

rate

show

increase

nwiJ I7*2
Chile, 4.75%

T„

wards.

America, entrepreneurs get
easy credit and the people lose a
good share of their savings, with
the
difference
that
the
Latin

Have inflation and multiple rates

Mexico, 7%
Peru, 7.25% in Colombia and 8%

discouraffpd

exnorts?

mscoui:agecl

Can

expons*

the

can

the same way now in

Latin

the rationale of multiple rates.

&
in

entrepreneurs and went bust after¬

inflation so

3 25%
nv

we cat
$>anks granted easy credit to

ou^ie^ve? ^nfSimr^o

these

these'facts,

growth in real income be credited
Am erican
public loses now
to inflation?
Is a development
through inflation while the people
-Overall Trade-Terms Good
policy without inflation possible?
latter has been
of the United States lost their
In order to complete the present W The widespread occurrence of
latter nas oeen
savings then through bank fail-,
inflation in Latin America
outline of facts
rr^Hit

quantitatively the

but it should be remembered that*
were the times when wild-"

why Inflation9

In the face of

stantially in all the large countries in the group, except Argenannual

Svided

evenly

for

r^\77o^7tia7ln7"a7^aubtina.

America

Commission

in Brazil.

;

,<»

may
affecting mone¬
ures
and the defaults of State,;
tary and exchange pblicy, or af¬ be explained in part by habit, in
and
Public
Utility
fected by it, we may add that part by the,present stage of de¬ Municipal
bonds.
during the period under study the velopment of these countries and,
A third explanation is the wide¬
in part, by the belief, shared by
overall terms of trade of Latin
belief
in
many
Latin
^spite of the elaborate exchange America have been good, and that many of its leading men, that spread
The Gamut of Inflation
control systems existing in most the inflow
of capital, both private moderate inflation is the best pol¬ American countries that inflation
is a necessary evil on the path of
Inflation in the countries ex- of them, has resulted in exchange and
icy for development, stagnation
official, has been small.
economic progress.
amined
ran
the
whole
This idea is
gamut, depreciation of approximately the
Table VII shows that in 1948-56 being its only alternative.
Habit
v\>/'
same
seldom advocated in the open by
magnitude as the rise in the terms of trade for'
all Latin is the first explanation because
TABLE III
prices. In Mexico, where there is American
responsible people but it widelycountries, as calculated once the general public gets used
Prices and Money Suoply in 1955 no exchange control, depreciation
to continuous rising prifces and held in private, in one form or,
by
the
International
Monetary
has developed through two de¬
(1948 = 100)
Fund, have been well above the learns
to defend itself by re- another, sometimes as a firmly,
held
Money
conviction
valuations; and in the other coun¬ level of 1937 but
and
sometimes
that they have questing periodic salary increases,
Prices
/
buypiy
with
reluctance
tries, through a more or less con¬ been
and
skepticism,
falling since 1954, owing to ?he ™ost powerful check against
Cuba
89
151
tinuous deterioration of the free
fcqfc qlways 'with pauch.'.mpr^ re- ?
the decline, tin; agricultural
.prices, inflation, is lost; rnWhen' > public
Domin. Repub.;
90
253
rate, frequent shifts in the classiluctarice to accept stagnation and
which have .been only partly off* opinionv/does. .not; ,;protesi> very
Panama
*94
137 *
ficatioria'6f payments . and sucset ?by the- rise in the. prices of. Jqudly against a* moderate/rise: in more, skepticism about the, f^easi- l
Venezuela —JL* 104"
163
cessive changed inHhe rates them¬
metals.
prices
but
complains
louder bility of raising taxation, develop¬
„

that*

monetary expansion - As should be expected, lnflacontinues to prevail in the major- tion has brought about balance, of
ity of the large Latin American payments disequilibria to all the
countries is, therefore, valid.
countries in the group, -which, in.
ment

•

—

•

Ecuador
Costa

|105

195

113 "

134

Rica____

Guatemala
Honduras
El

Colombia

148

260

*170

Mexico

188

-\i

Peru

206

Nicaragua
Brazil

Chile

256
228

305

252

299

*380

—_

327

749

963

1183

1483

Eolivia —____*1756
United States—
105

124

_—

Paraguay

__^

rates

show

have

that

very

cost

that

living

countries

kept hy

based

such

the

as-

wholesale

prices and
keep in these

indices

relation

similar

indices

immediately

that

the

countries

and

preceding

them

the
note

SOURCE:

Statistics,'
Bulletin

from

following

where

1956,

Statistics,

counted

nance

but

Financial

and

Feb.,

Monthly

1956..,',;

million.

the

among

about

by 16% and

by 20%). In Chile, cost

Sni1Vmg Jncreased by
70% m 1954
have

measures

more than

1955, but drastic

been

taken

and

hoped that inflation will
stopped or, at least, greatly

slowed down.

countries

the

number

its

rates

Change in
Foreign
Assets

problems,

the

Cuba

1948. Table V shows

pav-

net

amount
it

does

reserves

not

•

used

Costa

con-

time

hard

include

•

Increase

—Change in Claims

544

■

...

-Colombia

Uruguay

'73

Mexico

408

on—

Unclassi¬
fied

Official Entities

Sector

Total

Assets

Real

Mexico

■'7;-877,V:

Exports

114

770

,3
til 7;

77;.:;/

29
6

'7; —47 -

100

2,070

3,353

Mexico

Peru

—12

59
74

1955.

100

70
:■

SOURCE:

17
12

tDecember, 1954.

International

Financial

■.

100

TABLE
.

100

(1937

1956.

America,

Nations.
Volume

.//;

and
;

1954,
'

Exports—See

II,

Figure for Colom¬
of 1954-55; for the

notes

the

other

countries,

Table

1953
-

bia is

foot-

Prices— 218

243

277

261'

Prices— 200'

173

200

142^139

131

1952

average

1953-54.

Vni

Capital Movements to and
From

1948___

1954

1955

256

279

259

264

(Feb.)

" 196

194

196

202

133

129

(Jan.)

Official

410

•
Total

1950—

„

1952

—66

344

387

450

105

—64

;

570

120

690

120

1,160

—50

390

340

563

3,025

(Jan.)

144

America

1,040

.1949___

1953

Latin
Private

.1951

Import

1 951

average

TABLE

10°)

Export

1C9

Latin

For

Net

■

1950

Terms of Trade__

•1950-55.

100

For Real Income—Economic Survey

Terms of Trade of Latin America

100

for

100
6

Statistics, April, 1956.

1948

Statistics, April,

100
100

l^United

359
.'•■■"I'

•June,

:
7.

—49

100

Total

•

Costa Rica

2,119

—18

2,994

Sub-total

161

SOURCES:

*11

;

107

7 7135

; 121

—287

;

150

A
100

sion

—4

Volume of

152
132

213 .:7,'j

*471

Income

*291

7'av;

817

Volume

Exports in 1954

758

and

14*

Paraguay

Expan¬

*227

—

Bolivia

TABLE
Income

140

*78

;

Peru

different

1,283

241

Chile

Private

Financial

currency

Real

devaluing the
for/: all
international:

84
...

Argentina

7
•f

International

and
of

875

re¬

pieces materialize by

steps

Instead

■

10
:

levels.

730

...

the different
successive

to check unessential

easy way

imports;* hence; when forced to
apply exchange controls or de¬

166

;

Govt, and

—10

177

Salvador.

to multiple rates.As said
above, multiple rates do not pre-.
vent depreciation of the
currency,
but divide it into pieces and make ;

Decrease (— )

Rica__

Brazil

—

sort

493

Nicaragua

—

preciate, governments tend to

;

1955

,378

Sub-total

gains and losses, but even if these
are included, the use of reserves
by these countries to cover tem-

Australia

-44

;

Honduras

intermediate

United States

Republic.—

Guatemala

because

Chile

the

exchange

SOURCE:

first

316

Ecuador

coun-

increase

Multiple Rates

Brazil

the

In millions of U. S. dollars)

year.

Venezuela

loss of

•

general

prices.

tries. This figure is not the total

Salvador

•

:~I

—

Panama

countries

only $49 million for the

Ecuador
El

establishment

trols for

cap-

1948

under

Repub.

without

Difficul-

Gold and Foreign Exchange Holdings

Dominican

—46

Venezuela

them with credit.

preciation of the currency

these

V;': ;

•

spite of their balance of

ments

(As % of Total
Expansion)

Dom.

(December of each

Sources of Monetary Expansion
1948-1855

*Cuba

correct, foreign

TABLE IV

million.

TABLE

study have at present algetting out of hand and entering. most as much
gold and foreign
stage* of hyper-inflation
(in exchange reserves as they had in

and

are

j'f.,•<

the

rose

$4,300

estimates

its

three.

yearly rate of
Colombia to 50% in
Bolivia,
the situation seems to be

Mm-ch

and

The annual average was,
therefore, $504. million. The Economic
Commission
for
Latin

exchange structure,
February of this year cut

down

average

February prices

ing i a capital market and main-taining steady growth of demand;

ties arise only when

ments

plicating

International

April,

Table

increase their investexpenditures -and f i-

yet available) amounted to $3,025

that have simplified their
systems;
it
had
been
progressively com¬

table.

tSee

drastic

estimate

'B'jmption

April of this year applied
exchange reform and
practically unified its system in a
single rate. Paraguay should also

living.

tRough

safely

can

during the six-year period 1948-53
(figures for 1954 and' 1955 are not

amounted

but in

•Cost

about taxes, low economic'activity
and unemployment, governments

Table VIII shows that total inflow of capital, in Latin America

the pace of
This said, we may proceed to
inflation: accelerates and/or when the question about
multiple rates.
the price of certain staple items— The
rationale
behind
multiple
bread, fuel, electricity, bus and rates is the same as that behind
in the fact that in spite
of the America estimates that from. 1950
railway faces, etc.—are left too cost of living subsidies. In
deterioration in their balance of to
fact,
1954
aggregate gross invest- far behind and have to be
raised, multiple rates are cost of living)
payments, five of the countries ment in Latin America
averaged but government subsidies on these subsidies financed
listed show a narrower exenange
by* export in-*
$6,500 million per year. Assum- staple items can
always * be in- dustries and consumers of
spread. To this list must be added ing that one-third of
luxury
this amount creased.
In countries accustomed
goods. They offer an easy way to
Chile, which in December, 1955 was
replacement, j aggregate net to monetary stability, the first dehad a wider spread than in 1948,
tax, an easy way to subsidize, and a
investment would have

196

210

_—_

Argentina

seems

little
effect, if any, in preventing de¬
preciation, which is the principal
purpose
of exchange control. It
also shows the existing movement
toward the simplification of mul¬
tiple exchange systems, reflected

182

$123

multiple

224

____

Uruguay

Table

fll5

—_

Salvador—

selves.

183

106

___

SOUitCE: International Financial Statistics, May, 1956.

■

195G
.

1953—

SOURCE:

2,462
Balance

}

of Payments Year¬
books, International Monetary Fund.

•

Volume 184
"»v.

Number 5558... The Commercial and Financial Chronicle
»:
/■ *- r •. ><•' ,V -.V{;-r y»•

':u.'

;

transactions, it is -devalued for ment can be done also, and better,
only part of them; establishing a- by other policies. Additional fiscal'
sort of scale with different levels,

resources

be .obtained

may :

(591)

Now Maekellar,

In this manner, multiple rates
try:" taxation;
to make the burden of
deprecia- promoted
tion

press

heavily

than

upper

the

income

lower

Bank

Wisener Limited

market -growth can be
by intelligent monetary
expansion within non-inflationary
limits;
within
these
limits,
a

and

Unfortunately,

members

the latter

multiple

■

to be

come

that

heavily taxes then the producers
supply the domestic market,

other

further investment for the expan¬
sion of export production is dis-*

couraged.

This discouraging effect of mul-

rates

exports

not

was

fully realized by Latin Americans
in
the past and, as far as it was
realized, it did not worry us excessively; generally speaking, we
have had very little faith in the

world

market

prospects

for

basic export commodities,

ing

that

them

the

boom

would

countries
in their

pass

material
left

This

outlook

with

for

this

and

the

little

Wisener, directors.
and

Mr.

will

become

and

Company, Limited,

not too distant

directors

Hayden

Wisener

King

Street, West.

Reporter

Governments

By JOHN T. CHIPPENDALE, JR.

staple
of

The

this

mar¬

commodities
for

most active and
in Government

not greatly concerned about

discouraging

effect

exports

centrated their efforts

con¬

develop¬

even

though

new

lows for the

year

ing industrial production for the

ar^

being
■

really the only market worthwhile talking about
obligations at this time, is in the short-term issues.

Inflation

Latin American Government offi¬

cials

and

businessmen

by hard experience: that
foreign/exchange is one of. the
worst, bottlenecks

a
develop¬
at the same
time
realize. that,
although their pessimistic outlook
has unfortunately
been justified
for some commodities, i.e. sugar,
continued prosperity in industrial

ment

program, and,
have come to

countries and pr o gr e s si ve in¬
dustrialization in underdeveloped
should

countries

create

panding market for

HOME

Tnis

Psychology Dominates Market

tne

in higher, wages

insurance

wage

well-known fact that

ex¬

developing countries and the less
pessimistic interpretation of mar¬
ket prospects for raw materials

brought

about the current
movement for the rapid simplifi¬

Government

bonds

Net

equity mar¬
rising and inflationary type
tonic for the Gov¬

1.34

estate

cash dividends) was $53.30, or at the annual rate

This $53.30 was 177% of the price of Home stock at the
decade, and 116% of the liquidating value at tne
date.
There was an increase of 145% in income from in¬

$5.33.

the

start

vestments in the same decade.

Llq.

Und.

Invest,

Value

Profit

$37.96

-$0.63

37.91

.1.84

1946

2.15

1.34

3.10

1.25

30%

23%

2.37

2.34

5.83

1.35

35%

27y4

1951

57.19

1.17

2.75

0.53,

3.39

1.80

33%

2.89

0.82

3.40

1.80

43%

353%

3.14*

0.55

3.60

2.00

41%

363/4

1.12

3.65

2.50

38%

0.36 V

0.31

2.00

48%

383/4

0.77

3.27

2.00

55%

1.01

answer

has

in moving, towards
higher yields because of the competition from other forms of in¬
vestment, whether they be loans, mortgages, corporate or tax-free
obligations, is considered to be the best form of proof that one
could be looking for as to what investors think of Treasury securi¬
Government, market

provided
expedient

countries, that have pursued an
inflationary
policy
have
de¬
veloped at a relatively fast rate.
But, wouldn't they'have grown
faster, or been in better shape to
grow faster in the future, if they
had applied non-inflationary de¬
velopment policies? All that in¬
flation

can

foster

develop-

increasing, faster than demand,
specialists.
V

the
^

opinion

these

of INDIA,
Bankers

in 1953.

the
the

beyond

any

question result in

money

market

would

any

West

Burma.

not

unfavorable

Reserve

■

>■

■

Government

ANALYSIS

13 N.Y.

City

Bank Stocks

London, E. C. 2.
(London) Branch:

Kenya, Tanganyika,

Aden,

Protectorate.

Capital_^».£4,562.500

Capital

_.._£2,851,562

Fund

Bank conducts

also

"
■

LIMITED

every

£3,104,687
description of

banking and exchange business.
Trusteeships and Executorships

securities.
'

the

QUARTER

COMPARISON

End

land

Government

tConsolidated

share.

SECOND

BANK

Uganda. Zanzibar, and Somali-

This

pressure

Authorized

change in the policies of

decreasing of the

per

payment.

Analysis

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Ceylon,

The

monetary authorities, and

this

Kenya Colony and Uganda
Office: 26 Bishopsgate,

Paid-Up

would

cents

Head

Based on these ideas, there could be a definite change in the
pattern of business activity in the future, which might bring about
conditions not dissimilar to those that confronted

NATIONAL

maintenance

money

refunds

tax

of 1954 was in a large
part due to that year's two severe hurricanes. There were bad
storms in
1955, too, but the damage was more from flooding,,
which for the most part is not insurable.
Better underwriting
results are looked for now, as higher rates on extended coverage
are now in effect; and the use of deductibles will be helpful.
The company's unbroken dividend record goes back to 1874;
and since organization it has disbursed $154,741,000 in cash pay¬
ments, and $10,500,000 in stock./The present dividend gives a
return of about 4.80%, a generous yield as yields on insurance
stocks go today.
The low pay-out ratio seems amply to justify

market

3.34

Income

31%

unsatisfactory earnings showing

The

most of the large Latin American

Federal

^Credit.

data.

qualified. Inflation
Governments with
way
for command
ties. Also, there is no likely to be any important near-term changes
deering additional resources and
given
producers
an
expanding kin the current pattern of affairs as far as Government securities
are
concerned.
However, yields on certain of these issues are
market, easy credit and protection
reaching levels where they are already or will soon be attractive
against imports
(through quan¬
to investors that have been putting/funds into non-Government
titative restrictions, multiple rates
investments.
or exchange undervaluation); and
these, have been powerful supports
Business Outlook Seen Vulnerable
to growth. On the other hand, it
Even though the inflationary ideas and continued pressure on
has. hampered
exports
(through
the money market are very much the rulers of the roost, and will
multiple
rates),
prevented
or
probably continue to be for a period of time, there is more than a
badly hindered the formation and
small amount of concern being found in some quarters of the fi¬
development of a capital market
nancial district about the prevailing pattern of business. It is being
and fomented luxury consumption
pointed out that the snapback in business following the settlement
and capital flight, all
of which
of the steel strike may not be as fast or as sizable as manv are
have been deterrents to growth.
now
inclined to believe it will be.
Commercial construction is
On balance, the favorable effects
going on at a torrid pace and it is not believed that it can continue
seem
to have been,
up
to now,
.to go at such a rate too much longer: Also productive capacity is
stronger than the negative, since
has

3.18

0.70

82.21

♦Includes

2.79

—2.51

74.91

1955

Rising Yields Clue to Investor Apathy

1.98

52.25

1950

tax anticipation certificates.

1954

and

Low

23%
22%

2.29

61.47

Here the

Uieh

5.80

1933

cautious

3.84

46.47

ties

come?

0.33

$1.20
$1.2034%
1.20
28%

38.52

the

-Price RangeDividend

1948

1.33

$1,21

1949

Under such conditions, there does not appear to be

action

;

F"rned

$0.03$

1.97

Taxc

$1.81

1947

SHAREf

Net

Federal

Income

RECORD—PER

STATISTICAL

TEN-YEAR

61.24

The

1946 were $95,100,000, in¬

;to $193,000,000 in 1955. The average underwriting profit
margin for the ten years elided with 1955 was 2.8%. The gain to
the shareholders, in that decade (consisting of the increase in

1952

We may now pass to our next
question: has inflation helped or
hampered the growth in real in¬

creased

of nourishment as far as Government securi¬
concerned, except for the short-term issues, such as Treas¬
or

y'y;

1.24

premium writings, which

too much in the way

bills

41.50

5.32

his equity plus

High

2.78

Real

/closing of the steel mills because of the strike did not bring about
any aporeciable decline in the demand for funds, especially from
those that were supposed to be in a position to pay off loans due
to the liquidation of inventories. With the settlement of the strike,
it is expected in some quarters that the need for credit will be
greater and this will mean increased competition for the supply of

ury

22.10

A Miscellaneous assets

and

The demand for lo^ns is showing no signs of a let-up, and the

are

these

19.15%

obligations
...

6.57

rates, of which the recent reform

out¬

wisdom

Receivables

loanable funds.

are

Cash

cation and/or abolition of multiple

Argentina and Chile
standing examples.

lack

stocks

Common
s

and price inflation psy-

Loan Demand Continues

the

Preferred stocks

stock market has not been exactly a
ernment securities market.

raw

realize

spreading risks geographically.
,
Despite the heavy losses, Home's assets grew. Even as recently
1904, when its fifth president took office, assets totaled only.'
$18,000,000. At the close of 1955 the consolidated balance sheet
showed them to be $525,034,000.
Home Insurance Company is licensed to do business in all
states, Canada, Hawaii, and elsewhere, and its premium volume is
widely diversified geographically. Its premium writings include:
fire, extended coverage, ocean marine, inland navigation, auto
physical damage, auto property damage, hail, etc.
In mid-1948 Home merged 11 affiliates in whose stocks it
had, until then, various stages of control. This brought the com¬
pany's outstanding shares from 3,000,000 (par $o) to 4,000,000,
which are now outstanding. It holds almost all of tne outstanding
shares of Home Indemnity Company.
i
A break-down of the company's assets shows, in principal
categories:

be found in the action of the

common

was

During the tenture of the company's second presi¬
dent, its facilities were expanded to all ports of the rapidly
growing country; and Home became the first American fire com¬
pany
to set up a property insurance business based on the
production ability of the American agency system.
The first loss sustained resulted from a catastropic fire in
Oswego, and cost Home $5,916. During the Civil War the com- '
pany's business in the South was shut off; and it continued to
suffer conflagration losses: Portland, Maine, Glens Falls, Vicksburg; and, later, the great Chicago fire that cost tne company
about $2,500,000, and the San Francisco fire that was almost as 5
costly. But these set-backs would have been worse if Home had"
not resorted to reinsurance treaties, and had not been forehanded

chology. which has not been a» favorable development for fixed *
income bearing obligations. Further proof of the effectiveness of
ket.. It is also

business

■

sections, and that of 1845 had
So disastrous had these fires been

admonitions.

Other

higher prices and this has created

1853, after two dis¬

comptroller warned mutual companies not to go
beyond their county confines to write business, and advised tne
stock companies not to go outside their own state.
Later, the

can

COMPANY

began business in April,

state

be any important change in the forces that

The ending of the steel strike resulted

these inflation ideas

INSURANCE

company

Insurance Stocks

—

wrecked tne business and financial

same

materials.
This realization of. the increasing
needs
for
foreign exchange in

has

THE

keeping quotations of these securities on the defensive. The
pressure is still on the money market and, until there is some
change in the boom conditions of the economy, there is not likely
to be any let-up in the interest rate raising and credit limiting
policies of the powers that be.
*

have

}■'

This Week

;

are

learned

•

The Government market continues to operate under the influ¬
ence of
the inflation psychology, and for the immediate future
there is not likely to

Insura

domestic market.
As
we
saw
in
Table II,
the
discouraging effect of
multiple
has
rates
actually
operated
in
many countries, depriving them of
badly needed foreign exchange.

}
The Treasury's decision to issue $3 billion of tax anticipation
certificates, dated Aug. 15 and due March 22, 1957, but acceptable
in payment of taxes on March 15 next year, with a 2%% coupon
rate, for new money purposes, was in line with what the money
market had been expecting.
"

mul¬

and

for money and credit is as sizable as ever and
that the attraction of Government securities to inves¬

means

made in many of these securities. The market for Treasury obliga¬
tions is still very narfow and limited and, as has been the case, it
does not take very much in the way of selling orders to have a
very marked effect upon the quotations of these securities. .The

upon

market

enthusiasm

demand

tors, is lessening,

desire

dependence

pessimistic

lack

rates

for

production largely explains
why Latin American Governments

tiple

Frank

our

their

were

Maekellar,

President;

Mr. Maekellar

will have both in Latin

Our

By ARTHUR B. WALLACE;

that

den and

America,

consuming
production

foodstuff

and

to continue our

them.

territories and those

own

kets had

believ¬

market

encouraged

Weller, Vice-President; R. I. Hay-

leaders. It is possible to
development without sacrificing financial
stability. I am
a

■"

compounded tne destruction.

have

i 4

Wisener,

ernment

future

Chairman of the Board; Philip A.

realized also by responsible Gov-

confident that in

will

cers

policies

in
an
orderly
This, I think, is well
understood
by
Latin
American

of their possessions and colonies.
Furthermore, the violent fluctua¬
tions experienced in the past in
raw

done

economists and is beginning to be

tiple

can

,■,

astrous fires in New York had resulted in the insolvency of most
of the insurance companies in the city. The great fire or 18«s5 nad

Maekellar, Wisener Limited. Off
by

fashion.

can

the

given by tariffs. All the good that
inflation

and
*

■.

TORONTO, Canada—S. R. Mae¬
kellar & Co., 25 Melinda
Street,
:

Toronto
Stock
moderate credit expansion may
rates do not burden only the con- satisfy the increasing credit needs Exchange, announces that effecsumers of luxury
goods, but also of the growing economy; and pro- tive Aug. 1 their business is being
the
producers of export goods; lection to new industries can be conducted
under
the
name
of
groups.

undertaken

Request

Laird, Bissell & Meeds
Members New York
Members

American

Stock Exchange
Stock Exchange

NEW YORK1 5, 'N. Y
BArclay 7-8500
1U248-49
A. Gibbs„ Manager Trading Dept.)
Specialists in Bank Stock*'

120* BROADWAY,

Telephone:

(L.

Bell' Teletype-^NY'

The Commercial and Financial Chronicle

(592)

Continued

I
I

Investing for Income
through

National Income Series
a

from first

Funds' Policy
President

common

because of their

involved.

Prospectus and other
may
be obtained
dealer or:
Securities &

Research Corporation

Established 1930

120 Broadway, New York 5, New Yerit

invest in

ATOMIC SCIENCE

through
ATOMIC

DEVELOPMENT
MUTUAL

FUND, INC.
GET THE FACTS AND FREE PROSPECTUS

;

Atomic

Development Securities Co., Inc.

1033 THIRTIETH STREET, N. W., WASHINGTON 7, D. C

Dept. C

Tel.

FEderal

Funds'Inc.,;

new

position of 5,000

direct

contrast

confidence

bull¬

decisive

accelerated
liquidation en¬
gaged in by the managers of U. S.
& Foreign Securities. In line with

and

confident

that the current

shares was
which

taken in Vitro Corporation

3-1000

New England
Fund

The

favorable buying op¬
which may occur in
of
companies facing
near-term adjustments but which
possess attractive long-term pros¬
pects."
,
Broad Street Investing Corpo¬
ration is another fund trimming
sail, continuing its gradual build¬
up of holdings of a backlog of
portunities

the

Cfeorge

PUTNAM

FUND

strong accompaniment of caution

Flexible

^Bost

And

from

Boston:

changing

"A BALANCED FUND"-

is clearly proclaimed by Milan D.

Caution
Trust

"Flexibility

conditions

Popovic, President of Blue Ridge

meet

Shareholders'

Mutual Fund, Inc., and an author¬

plays

key

ity in security analysis and port¬

folio managemertt. "Your manage¬
ment believes that our economy
Trust's
portfolio.
Some months
will remain strong even though it
ago, as it became evident to your
is not expected that it will con¬
trustees, Advisory Committee and
tinue to expand at the high rate
Investment Adviser that the for¬
shown
recently.
ward movement of the
Therefore, the
role

National Distributor

Coffin & Burr
Incorporated

the

management

the

economy

losing some of its momentum
and that maladjustments were de¬

basic investment

veloping

Founded 1898

changed.

was

BOSTON
NEW YORK

is in

vantage of

such

the

was

notes
held, the
position to take ad¬

short-term

—

from your investment

National

United

ish

soft

information

established in the form of

power
the

August 9, 1956

its policy in the previous quarter
(when $4.2 million of stocks were
spots in the economy will; has a substantial interest in atomic gold with no counter-balancing
prove short-lived. "The favorable energy; Reductions were made in purchases), in
the quarter under
side of the business picture bids. holdings in the aluminum, chemi¬ review
$16 million more, or about fixed-income bonds and preferred
cal and railroad fields, and the
fair to outweigh the
using money received
unfavorable1^
12% of the portfolio was sold, with stocks
at'the present time. "The over-all. Company's stake in the textile no
purchases. Cash and govern¬ from the sale of new shares for
this purpose.
picture still represents growth and industry was eliminated.
ments rose from 8% to 12% of
continued spending which together
;
Also adopting a wary attitude
total assets, after a $2 per share
Inflation- Consciousness
with an increasing population and '
was the Investment Company of
capital gains dividend distribution.
more demand for consumer goods,
Harry H. Hagey, President of
America, which raised the pro¬
With similar apparent demon¬
the Stein Hoe & Farnham Fund,
may be construed as optimistic.
portion of its net assets invested
strations of bearishness, T. Rowe
We feel that we cannot do other in explaining the Fund's mainte¬
in cash and U. S. Governments
Price Growth Stock Fund, with
than approach the future with nance of its portfolio's common
from 6% to 1014% and lifted its
preponderant portfolio holdings in
confidence since our investments- stock percentage, cites the longerpercentage holdings of industrial
the electronics and chemical in¬
and transportation stocks f r o m
represent a broad cross section of • run inflationary implications of
dustries, showed its aggregate of 15 to
steel
the ownership of American in¬ the
strike,
"Substantial
80%, during the quarter.
dollar sales exceeding purchases
"Your management considers this
dustry. It may well be that in the/ wage and price i^reases are
10-fold.
future we will look back on these likely to occur in steel, and per¬
more conservative position appro¬
Also following a withdrawalimmediate years as 'The Golden • haps
in enough other lines to
priate in view of various uncer¬
from-the-market policy has been
Era'."
cause
a
significant over-all ad¬
tainties in the near-term outlook
the Value Line Income Fund, Inc.
and the advance in stock prices
Francis Randolph, reporting for vance in the cost of living."
"Being of the opinion that at the
which
has
taken
National Investors Corporation, of
place," com¬
Among the managements re¬ present time the
yields on most
mented President J. B. Lovelace.
which he is Chairman, refuses to garding the quarter's market de¬
high-grade American equities are
Midst its overall bearishness this
view the boom with alarm. "Some clines as a buying opportunity too low
relative to bond yields,
of the stresses and Strains that or¬ was Dividend Shares, Inc.
"This the Managers of your Fund have fund increased its proportionate
dinarily develop in a period when decline [from 512 to 489 for the for some time past endeavored to holdings in the utility, aircraft,
chemical, metal, and oil groups.
the national economy is- operating ' Dow] was viewed by your man¬
protect the appreciation in your
at a very high level were reflected • agement as offering an opportu¬
Specific skepticism toward the
Fund against a general decline in
in the past quarter. However this
growth stock section of the mar¬
nity to employ a part of its cash stock
prices," comments Arnold
ket was exceptionally voiced by
development has not yet reached ; reserves for the purchase of ad¬ Bernhard, President.
"They have
the trustees of New England Fund,
a point at which modification of
ditional common stocks at what done so by accepting capital gains
Messrs.
H.
E.
Kingman, F. G.
your
company's
emphasis
on
and investing the undistributed
growth stock investments seems appeared to be attractive levels
Goodale, and A. T.
Armitage
portion of the money in highwho comment, after
advisable." The com pa ny con¬ for income and long-term appre¬
citing, Aprilgrade bonds and preferreds.
May 10% drop in the Dow-Jones
tinued fully invested in common ciation," said
President Hugh It would profit shareholders little
Industrial Average, "In view of
stocks during the quarter. Hold¬ Bullock. "As a result
during the to hold securities that have ad¬ the
continuing uncertainties, the
ings in aviation, electrical and latter stages of this decline, the vanced widely, if subsequently Trustees
expect to. maintain the
they are to decline widely too.
electronics were increased, and a management
invested
approxi- This is a time to hold a defensive Fund's strong defensive position*
It is our considered judgment that
position and to keep that portion
the risks of having the major por¬
of
funds
which
is
invested
in
tion of the assets invested for
equities limited to Special Situa¬
d
♦
tions and certain categories of growth under today's conditions
would outweigh the possible ad¬
stocks which for individual rea¬
vantages."
sons, may be expected to serve
its purpose better than a fully in¬
Swing to the Long-Term Attitude
vested position in the general run
A gospel of neutrality with a
of 'blue chip' stocks."
who is

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk

additional

Contrasting Policy

/ '

Dominated
By Cautious Buying

diversified group

bonds, preferred and

stocks selected

stocks."

Trust

mutual fund, tho primary objec¬
of which is to provide ail

investment in

$5,000,000

common

tive

mately

page

.Thursday,

PORTLAND

HARTFORD

BANGOR

certain segments of
the economy, steps were taken to

Ask your Investment Dealer for free
Prospectus or write to

Putnam Fund Distributors

place the trust

con¬

Inc.

servatively balanced position. The

Dept. C, 60 Congress Street, Boston

readjustment of investments was
accomplished without anv impor¬
tant loss in income, as rising in¬
terest rates have made it possible
to acquire high-grade short-term
fixed income securities affording
a high satisfactory rate of return.
Through the reserve buying

NEW YORK

CHICAGO

LOS ANGELES

ORLANDO

'ABERDEEN

common

the

policy of holding

stocks should remain

The

stock

prices

un¬

prevailing

market, particularly

in certain favorite groups and in¬
dividual issues, suggests that ex¬
treme

care

selection

exercised

holdings.

The

the

man¬

agement, recognirjng the need for
increasing protection on the down¬
side, has recently add^d to the.
portfolio t wo convertible pre¬
ferred

issues

values,

where

excluding

investment

the

premium

FUND
INVESTMENT
A balanced mutual fund

DESIGNED

over

FOR

•

300

COMPANY

investing in

bonds, preferred and

common

stocks selected to provide reasonable current

POSSISLE

possibility
long-term growth of principal.

GROWTH
Prospectus from
or

mail coupon

your

CimmiiimMc

dealer

STOCK

today to:
A mutual fund

—

eystone

income with conservation and the

LONG-TERM

DAVID L. BABSON

common

—

Custodian funds
W'ith the investment

RESERVES:

FUND

INCOME:

investing in diversified

stocks of well-established

objectives of

Series B-l

iSeries B-2, B-3, B-4,

K-l, 5-1 and 5-2

companies selected for the possibility of

of Canada, Ltd.
A

fully managed Canadian

Investment

long-term

Company seeking

5-4

your

Canadian Laws

long-term growth of income and principal.

Dept. CFC-51

83 Broad Street, Boston 10, Mass.
Please send Aberdeen Fund Prospectus

Russ

Building

•

Street

"Investment Company Managers since 1925"
State

Wholesale Representatives: Boston

The

San Francisco 4, California

Prospectuses available from

City

local investment dealer

Managed and Distributad by NORTH
AMERICAN SECURITIES COMPANY

Name

Investment Dealers

the above

'•

•Chicago* Dallas* Los Angeles • New York* Washington, D.C.

Keystone Company of Boston

Congress Street

CAPITAL GROWTH and

certain TAX BENEFITS under

5eries K-2, 5-3,

Prospectus from

DISTRIBUTING CORPORATION

GROWTH:

JCund

Boston 9, JMass.

Volume

paid

184

for

the

ar?. n0^
price.

*ar

conversion

means

feature,

crease

below the purchase
privilege to convert,

The

provides
in

Number 5558.... The Commercial and Financial
Chronicle

rising markets

site

Citing

the - rising price level,
employment,
construction
outlays, ana record retail sales,
Charles Devens,
President, says

high

tion

Incorporated
that

management

price, level is
than

down, with

convic¬

long-term

apt to

holds, but for this

directions

for

Tri

pe¬

its merry

Common
in

nortfolio

be up

last

liquidation

quarter

holding

single

Increased

nated.

along

middle-Q£-th$-?pad

the

in¬

rayon

ments

way

the

invest¬

were

building,

and

drug

SOVEREIGN

industries.
San
The percent-* public *'U,tLlritv
assets devoted to Diego Gas & Electric Co. was ac¬

pe¬

net

stocks

common

decreased

slightly, without
in

;

the

issues

moderate

some

the
$10,441,085,

holding,

new

INVESTORS

the

A MUTUAL INVESTMENT
FUN0

Scrutiny of the commentary by
fund

made

management

also

reveals

electrical" and

embracing of the longer-term at¬

Prospectus

constructive intensification of the

titude

railroad, retail

paper,

rubber

tune of 20,000 shares.

were

aluminum, avi¬

chemical,

electronics,

against purchases of only $3,124,728. i: and

There

reductions

in holdings in the

ation,

quired

very

major shifts

any

held.

industries;

with

2£

dustry (American Viscose) elimi¬

largest

went

company,

of the

age

during

totaling

the

without commotion.

oppo-.

occasional

Middle-Roader

Continental,

closed-end

i nus incorporacea s
emphasis on
the long-term is evidenced
by its

consequent de¬

"Tri" A

riods, but in general over longer
periods they have kept pace with
the increase in the price level."

Investors

the

power

riod the record is clear.
stock prices can move

mucn

risk."

they "tend to confirm the

purchasing

the income from fixed-income in¬
vestments.
Nobody knows what
the future

participating

without

in the

(593)

portfolio

policy.

Continued

the

Thus,

;

page

CEORGE

845 LAND TITLE

upon request

BAILEY

CO.

BLDG., PHILA. 10,

FA*.'

General Distributor

■

V' /

; 1

,-v-

■

RIttenhouse

6-9242

Balance Between Gash and investments of 67 Investment
Companies
End of Quarterly Periods March

and June

1956
Investment Bonds and

Net Cash & Governments

Thousands of Dollars
-End of-

Open-End Balanced Funds:
American

Business

Shares.—

20.2

20.1

11.8

32.0

3,567
8,236
9,673

6.1

1,065
31

g 1.7

215

11,427

9,025

6.4

1-:-; ^

291

279

U; 8-4

.ggg

1,950
22,879

J1ZZZ

504

22.5

2,632

2.4

1,132

Mutual

...

Johnston Mutual Fund
National

George

Securities

Putnam

Fund

Stein

Roe

Value

Trust

Line

9.8

19.6

27.8

5.5

H26.3

H28.1

$70.7

18.0

74.2
73.3

Z.2 : ,^y-y;

73.5
99.6

25.0

0.4.,:

•

YV;g

74.3 -y'/yy

None

8I.2.;

6.7

70.1

12.8

20.0

70.8

25.7

6.0

23.9

28.3

0.3

Farnham

Fund

266

5.7

-g-.

9.7

894

4.9

1.7

11.5

11.7

83.6

2,489

16.6

9.1

26.1

31.4

4,129

2,464
1,707

4.9

9.4

3.1

20.1

...

71.4

75.1

74.0

74.2

V--'

28.3

20.0

27.2

3.1

7.4

41,242
152

...

■

63.i

61.3

f: 86.6

;

•'

Prospectus

Request

59.5

;

148

Fund

Investn||ciit Fund K *

78.9

57.3

1,716
2,134
3,197
62,097

;

A Mutual

71.0
V

71.9

■:YY

2,876

4,933

Boston

68.1

96.8

23.5

8.3

None

10.4

5.1
>

inc.

73.8

24.8'g

16.0

1.7

yyyy--:

$66.4

8.2

gg.'-,;

gJgFUNDggg

4,142

Wellington Fund
Whitehall Fund

46.4

4,553

Scudder, Stevens & Clark Fund
Shareholders

51.4

57.6

2,695

June

;

51.7

293

Securities—Income

Nation-Wide

28.5

41.8

2,864

Massachusetts Life Fund

March

4.1

3.0

PHILADELPHIA

End ot-

■.Y June

28.1

10.4

Group Securities—
; Fully Administered
Fund
Investors

March

5,619

—

June

Grade Bonds & Pfds.
Per Cent of Net Assets

Jbna 01-

6,212

4,571
11,450

Eaton & Howard Balanced Fund
General Investors Trust
V

■

3,731

Commonwealth Investment
Diversified Investment Fund

Fund

March

5,059

Fund

Dreyfus

June

Com. Stks. Plus Lower

Stocks*

Per Cent of N»t Assets

6,539

Axe-Houghton Fund "A"
Axe-Houghton Fund "B"
Boston

jc.uu

March

Preferred

Per Cent of Net Assets

1,624
2,459

8.8

13.8
29.0

72.2

61.7

62.4

19.5

70.0

71.7

33.8

59.1

56.1

27.1

22.3

33.2

1vy,-,y yi

1.9

7.4

23.2

42.3

37.8

26.1

21.5

1.9

11.4

25.3

33.3

21.0

...

10.1

;

24.7
30.9

4.3

9.0

;

67.i

45.9

71.6

54.5

gggi; FAHNESTOCK

& CO.

Distributor

1;;

South Broad

123

St.t Philadelphia 9

66.5

55.8

Telephone: KIngsley 5-3311

52.2

Open-End Stock Funds:
Affiliated

Fund

Broad

Street

Bullock

Delaware
de

1,694

Vegh Mutual Fund

6,80,9

Fidelity Fund

8,477

Mutual

;

1.5

14.2

13.5,

320

g 2.0
g: 6.8

9,525

932

2.8

8,463

18.3

5,949

0.6

841

y
,

2.6

95.3

81.3
:

82.4
'

86.6

90.1
y

86.6
92.8

None

84.9

84.5

3.7

98.6

.None

2,7

5.7

None

■

93.4

86.3

None

3.7

81.1

83.9

y'g 1.5

None
2.5 y

70.2

95.6

86.9

None

90.1

69.7

(

;

86.5
87.2
91.6

98.8

Growth

Stock

2,456

4.9

3.9.;

6.0

1.5

11.4

10.5:

;

None

6.7

16.1

15.7

tfbb I

None

3.9

g"'g

None

4.i

• r

95.1

V 96.1

■

;

94.4

81.8
94.0

81.1

89.5

;

7-1.0

57.1

958

670 /:

Fund

10.2;

1.5

1,604.

None

None-

975

1,069

7.1

7.6

484

536

3.8

4.2

220

Y1.7

0.7

None

1,392

6,164

2.4

10.5

Stock

1.7

1.6

United

Wall

Street

Wisconsin
r

••'.y

••

98.5

common

stocks

so-

lected in

varying

pro¬

for.

their

74.0
98.5

..-g.v

Express
European

American

Carriers

1,297

80.3

;

99.0
98.7

;

32.6

61.5

11.0

84.0

None

98.3

99.3

0.3

97.6

89.2

1.6

97.7

American
Public

Lehman

2,402

0.7

y>
;

Overseas

2.8

;

11.2;.

possibilities.

96.7

None
None

None

18.7:;

None

1.4

6.8

None

;

None

2.8

18.7

2.7

10.3§

636

5.0

3.4

6,024§

1.6

13.8§

831

932

4.5

5,677

6,401

8.2

5,250

2,928(a)

18.7

10,426(b).
2,828
1,628
r

10.9

11.2

None

4.3

3.3

2.8

32.3

16.0

....

Investors...

;

Service

59.8

None

1.2

DISTRIBUTORS/lju.

81.3

'DELAWARE1

97.2

request from the

undersigned,

88.8

88.3

97.2

available

^300 Broadway

•

Camden 3, N.J.

81.3

98.6

92.0

2,748
2,112

—

Securities

Foreign

1,118
1,227

1,645

11,830

Securities.......

17,179

523

Investment
Ba frr
for

bonds and preferred
stocks:
Moody's Aaa through
bonds; Fitch's AAA through BB and approximate equivalents

preferreds.

fication.

None

0.2

97.3

89.5

•

16,656

Tri-Continental

1 Bonds

iCommon

and

stocks

preferredls

only.

irrespective

§Reflecting

of quality classi¬

temporary

6.5

y.'

10.5

12.8

None

0.3

5.1

3.8

4.3

9.7

None

g 11.1(a)
4.3(b)

0.4
8.1

None

12.4

84.5

83.8

' v

98.4 ;

g
;

85.9

91.8

;o.i

4.1

y.g...

90.3

81.3
93.5

88.9

y!Y--;Y

94.6
'

88.8

92.9

;y:;:

93.9

65.o

21.2
y

90.6
y

89.1

2.8

19.0

None

91.7

None !

2.7

;;

80.6

None

91.9

79.9

78.2

87.6

from

proceeds

short-term

bank

paid July 20.

stock
loan.

offering. aAfter payment of $1,500,000
providing $11,636,543 for dividend

Electronics Fund,

bAfter

declared

Average Allocation by 67 Companies of Assets to Cash and
"
Equivalent, Defensive Securities, and Risk Securities

March 31, 1956

Open-End Companies:

Plus

Minus

Anprox.

Total

Unchanged
Balanced Funds

•;,,.gr 3

—

Totals

etc. and Governments
securities

Funds

Closed-End Companies..

Net cash,
Defensive

„

bonds and

Risk securities

June 30, 1956

7.9%

7.0%

—

Y'Y

6 g /

preferreds)

'(common

10.9

income, payable August

31, 1956, to shareholders
of record August

11.6

81.4

share from investment

August 2,1956

81.2

Inc. have

dividend of

Chester

stocks plus

lower grade bonds and preferreds)

per

(investment

—

31st consecutive div dend
The Directors of Television-

placement

Changes in Cash Position of 67 Investment Companies
—June 30, 1956 vs. March
31, 1956

0.6

•

SUMMARY

Stock

ciation

appre¬

Corporation

National

:11.7

10,388§

971

628

Niagara Share

ond

84.8

portions
income

Securities..

General

762

International

General

•

Companies:

American

g.g

156

•;

18,736
4,356
1,294

4,282

...

Fund
■

Adams

22,313

Fund

Investing

Closed-End

Investment

Income

may

Copies of Fact Book (Prospectus)

Fund.......

Sovereign Investors
V/. State Street

which

98.8

Scudder, Stevens & Clark—
American

of diversified securi¬
ties

97.5

95.1

None

31.4

portfolio

bonds, preferred or

None

invest¬

an
o

61.2

None

gl 12.2

9.5

1.3

None

10.0

1.0

4.9

None-..

1.2

16.0

1,016

6,469

Pine Street Fund
Common

98.4

0.9

Offering
ment

86.8

22.3
23.1

97.3

None

; y

g...:, y-;

1.0

86.8
98.0

9.3

24.6

0.6

YYy, 2.5 ' YY.""y, ;

1,296

1,503

Securities—Stock

Selected

★ ★ ★ ★

'gvv.
V.,

None

1.2

ygy;

16.1

4.7

YY,

14.3
,

2.5

11.3

'gr

None

89.0
•:

None

4.0

10,437

;

17.4

15.1

27.6

None y

13.4

10.9

None

25.8

4.7

7.4

None

■v

4.6

■

15.5

7.5

2.2

13.7

9,751
6,028

;

:YY" s.-

13.1

5,137

Fund

Investors

England

Investors

National

New

1.9

I
!
j

535

Fund

National
v

-,;gy

5,174

Massachusets' Investors'" Trust

1.3

482

Fund

Investment

:1.4

Fund..

Investment Co. of America

Mutual

368

Foundation

Massachusetts

;

1,510
1,038

4.4

rx.

Capital Corp
Group Securities—Common Stock Fund
b Incorporated Investors

General

Loomis-Sayles

11,218
4,459

4,952

Knickerbocker

1,267

3.5

Investors

Institutional

1,337
4,110
1,693
1,982
28,900
7,485

33,412

....

Eaton & Howard Stock Fund

Fundamental

4.5

y ■:

3,112
1,709

_______

Dividend Shares

11.0

3,981

Fund

163
'

1,208 ?■■■'

9.9 g-g

36,229

;g 334

Investing..1

Fund

40,462

Axe-Houghton Stock Fund.
Blue Ridge Mutual Fund.il..
"'Bowling Green Fund

2. 1956.

D.Tripp
President

IJ5 S. LaSalle Street, Chicago 3,

Illinois

■

f"V%

The Commercial and

(594)

New Waldron Branch

office

branch

opened

has

Inc.

Co.,

ron

(March 31

South Hill

517

Thursday,'AugiisV 9; 1956

—

June 30, 1956)

than one management group occurred.
Issues which more managements sold than
bought are in italics. Numerals in parentheses indicate number of, managements making entirely new purchases or completely
eliminating the stock from their portfolios. (Purchases shown exclude shares received through stock splits or stock dividends.
Changes through mergers also disregarded.)
<
,ri
Issues in which

under the management of

Street

..;

Changes in Common Stock Holdings of 52 investment Management Groups

;

Calif.—Wald¬

ANGELES,

LOS

Financial Chronicle

Ben L. Goldberg.

transactions by more

Sold-

-Bought—

-Sold-

Bought
No. of

No. of

No.of

No. of

Trusts

Agricultural Equipment
2(1)

3,400

2(1)

6,000
23,000

International

75,000

Boeing Airplane..

20,300

Douglas

1(1)

FUND-INC
Dreyfus Fund

General

1,500
3,900

9,030
12,200

Bendix

hope

3,000

and

what

intend

American

15,900
12,700

Eastern

11,900

Pan

in that direction.

>J:

{prospectus) free

4(2)

Lines.

American

World

14,164

3(1)

3,300

None

5(1)

For Income

Bat

Thompson Products
Clark

None

9,000

Equipment

■

6,400

2(2)

26,200
19,000

...

None

2(2)

None

3,800

None

17,000

...

Gould-National

5(2)

3(1)

—

None

Fruehauf

Motors

1,100

2(1)

—

Trailer

General

22,400
1,000

27,000
67,600

3(2)

2(2)

None

15,900

Johns-Man ville

4 r'vv

2(2)

Boston-Type

2(1)

Mutual Fund

3,000

Star

21,250

National

from

4(2)

6,500

National

Lead

3(1)

INVESTORS PLANNING CORP.

3(1)

25,900
27,000
2,500;

of America
42nd

York

None

3,750

1,100

None
None

6(3)
2(1)

2,400
11,700

....

4(1)

N. Y.

17,

Chemicals
NATIONAL DISTRIBUTOR

Air

Reduction

1(1)

17,400
5,500
2,200;

American Cyanamid
American Potash & Chemical-

7(2)

26,674

Dow

2(2)

6,500

5(1)

FIF MANAGEMENT

2(1)

CORPORATION
950

1(1)
5(4)

Broadway

5(1)

Denver 3, Colorado

2(1)

4(3)
4 v

'• 4

None

Hooker Electrochemical

Pennsylvania

-•

None

V'-V*

3,030

Salt

Allied Chemical & Dye

Texas

3(1)

13,500

2(1)

2,500

Creek

3(1)-

(Monthly)

3(2)

5(2)

Plans

Coal

4,100
20,100
13,100

American
Anchor

Glass

CUMULATIVE
Dividend

Can

6,300

receive

Owens-Illinois

Fibreglas

3,000

Owens-Illinois

Glass

16,300

•

6,000

Address

12,000

2(1)

3(1)

16,400
5,306

6(2)

3(2)

2(1)

None

;

Insurance

5,000

——

-----

3,500

None

—.

None
1

2,500

Co.—
.

None

7,200

Archer-Daniels-Midland

11,300

Armour

4,000

2(1)

1,000

Products

17,000

Corn

30,000

Libby McNeill & Libby—
Quaker Oats
—'

12,000
1,200

None
1

Refining

Dairy

Pillsbury

1,300

None

United

None

Fruit

5,800

200
300

Ex-Cell-O

95,300
6,170
2,600

1(1)

11,100

2(1)

23,500
23,400

12,400

1(1)

3,000

...

None

——

——.

——

1(1)
None
None

2(2)
2

Kl)
1(1)
None
1 m..

2(1)
2

Metals and Mining

9,100

3,000

New

3(2)

18,100

Phelps

Zinc...

Jersey

None

1(1)

700

Dodge,

3,100

2(1)
lv j

700 ;

20,000
4,800

7,700
7,000

15,600

10,500

None
None
None

None

1,000

None

'IV

1,400

4,000

None

900

14,300

2(1)

None

3(1)

3(1)
None

None f

...

100

1,900
16,000 y,

5(1),

;

3(2)
2(1)
2(2)

31,400

None

None
2

4,000

Natural

American
Colorado
El

1,000

Lone

4,600

Mississippi River Fuel

24,010

3(1)

10,000

Paso

Natural

Bristol-Myers

3(2)

18,500

Mead,

Johnson

3,000

—

Natural

64,100

Merck

Co.

8,500

Oklahoma Natural Gas

28,800

Parke,

Davis

None

24,500

Pfizer

(Chas.)

None

2(1)

13,000

Sterling

1,500

3,000

Republic Natural Gas

1,500

Tennessee Gas Transmission

None

2(1)

2,000

4,500

1.)

12,988
None

Panhandle

Eastern

Pipeline

5,000

2(1)
None

4(2)

3(2)

3(1)

.400

Gas

2,400

6(3)

6(1)

3(1)

1,212 J-

Gas

Star

Northern

—

Gas

McKesson

Interstate Gas

1,000

None

7,500

Gas

3,000

5(1)
None

6,400

16,200

Lead

Joseph

•None
:

27,495

;

St.

Natural Gas

4(1)

9,200

4(3)

None
4,000
None
None
6,600
5,500
12,000
2,000
None
1,800
1.600
2,400

—

13,810

2(2)

11,200

li.-

9(3)

KD
4(4)

37,500

I-

American Machine & Foundry..
Caterpillar Tractor
Chicago Pneumatic Tool
Cincinnati Milling Machine—__
Dresser Industries —
Food. Machinery & Chemical.--.
Ingersoll Rand
Joy Manufacturing
—a
Monarch Machine Tool—
Thew Shovel
Combustion Engineering

24,000

None

and Industrial Equipment

Machinery

2(1)

None

21,000

—

6,200
None

—V—.

Mills

None

....

Standard Brands
National

None

1(1)

None

Co..—.—

2(1)

None

Home Products

Kl)
None

Products

Food

None

1,000

None

Fidelity-Phenix Fire Insurance-

3(1)

5,100

'"""

Travelers

None

—

U. S. Fidelity & Guaranty
U. S. Life Insurance.

None

2(2)

;

State

Finance

1,500

2(1)

City

1(1)

2,800

3(1)
1

None

__r

Pittsburgh Plate Glass—.
Corning Glass Works

American

None

2,000

City Bank, N. Y.

14,600

:■ -1

None

5(1)

Reinvestment)

FIF Investment Plans.
v

Name

None

54,800

None

PLAN

2(1)

None

Insur.

Casualty

2,300

2(2)

None

Lily Tulip

2(1)

Booklet-Prospectus Ebout

|
I

would

,2,800

10,000

Can

5,800

4(2)
I

2(2)

1(1)
3(3)

6,000

Industrial Acceptance

1,500
10,900

None

Drug Products

2(1)
4(2)

14,500

Guaranty Trust Co. of N. Y...
Household

None

16,000

Credit

National

None

2,870

4(1)

Hocking Glass.

Continental

First

800

None

6,800
and

None

6,200

None

2(1)'

life insurance)

FULLY PAID

(Automatic

Pittston
Containers

Continental

1,000
3,700

2(1)

20,500

Corn.

Gulf Sulphur

Island

4(2)

Connecticut General Life

13,500

3(1)
■

3,170

Du Pont

2(2)

group

12,410
3,500
1,000
None

Union Carbide & Carbon.

Tennessee

2(1)

—

20,000

V 1

10,000

2(1)

(Optional with

907

None

„

Rohm & Haas

ACCUMULATION PLAN

•"

3,500

4(1)

Coal

CAPITAL

Investment

14,500

None

„

FINANCIAL
INDUSTRIAL FUND

FIF Systematic

1,664

Monsanto Chemical
Olin Mathieson

3(1)

30,000

Finance

None

6,500

...

Chemical
Eastman Kodak ——„

1,500

Insurance—.—

Associates Investment

Commercial

Principal underwriter for
y : *

1,000
15,282
4,200
20,000
13,800
10,000
4,580
2,500

Life

Aetna

Beneficial

21,800

2(1)
3(2)
3(3)

None

54,500

Yale & Townc

None

Trane

Street

None,

—

C. I. T. Financial.

2(1)

300
_

—

5,000

...

Radiator

None

2,000

....

Gypsum
Plywood..

American

Sprague Electric -J-

4,000

None

1,000

Minneapolis-Honeywell

4,600
—

Gypsum

2(1)
4(1)

4,120

1(1)

None

...

Masonite

3(2)

3(1)

9,800

3(2)

None

Cement

Prospectus and Literature

1(1).

4,300
L

Cement

26,500
8,700

None

Certain-teed Products 2—

Lone

Corp.
Raytheon Manufacturing

3,150

2(2)
7,500

Armstrong Cork
Carrier Corp.
Consolidated

None

18,800

Radio

16,600

American Seating

1(1)

2,000
6,400
15,400
9,000
16,000

2(1)

TRUST

East

None

Building Construction and Equipment
1

INVESTORS

New

3(2)

2(1)

Coca-Cola

4,100

2(2)

2,000

Westinghouse Electric

7(1)

20,500

Stewart-Warner

Beverages

GENERAL

None

Square D

Philco

10,300

3(1)

...

....

4,000

None

Finance, Banking and Insurance

None

—

Sunbeam

17,200

3,000

...

Electric V—_—_—...

McGraw Electric

None

3(3)

Parts

and

None

—

2(1)

3,500

64,500

2(1)'

General

2,700

Cutler-Hammer

300

Airways.

Lines

Air

1(1)

5,500
5,000

7,400

4(2)

.j?

Broadway, New York 4

2(1)

4,300

2(1)

from your dealer or....

4(2)

None

4(3)
2(1)
4(2)

6,800
20,000

Aviation

Airlines

Air

United

7,700

1(1)

DREYFUS Corporation
50

30,000

Automotive

Illustrated booklet

1,000

Aviation

consider sensible risks

1,298

Aircraft

American

6(1)

Airlines

take

500

Lockheed Aircraft

North

2(2)

12,000

Aircraft......

make your money grow,

Kl)

400

Clark Controller

3,000
1,400
7,100
11,400
2,100
7,000
28,500
20,000
2,000

2,000

«_i_.

....

Aircraft

McDonnell

27,350

6(1)

5(4)

Dynamics.

Grumman

800

United

In the

Aircraft

1(1)
2(1)
2

Manufacturing

5(1)

2(1)
4(2)

16,500

—

6(2)

15,200
34,000

Harvester

Allis-Chalmers
Deere & Co.--

Aircraft

Electrical Equipment and Electronics

None

Lily

None

Robbins

Drug

(Eli) "B"

Smith, Kline & French

None

3(1)

27,000

Burrroughs Corp.

3(1)
—-

United

None

18,100

36,000

3(1)

2(1)

None

Office

2,425

11,000
None

26,700

2(1)
6(2)

Equipment

None
500

National Cash Register

Smith-Corona

3(1)

83,650

Gas

2,000

10,900

i-'i

V- 8,300

-----

None
I V

5,000
—

1,488

2(1)

Volume

184

(£Jumbpr 5358.... The ,£qrnmercial

and Financial Chronicle

(595;
—Bought—
No. of

Sold

■

No. of

Trusts

—Bought—

No. Of;

No. of

Trusts

No. of

5(1)

3 :

4,800

Amerada Petroleum

4,600

Anderson-Prichard Oil

32,200
3(3)
250,000
3(1) i
15,900
4(1) ;• 14,700
5(1) ;
4v#:'

Cities

3(2)
i

3^.'

...

Union Oil of Cal

5,700

"2,000

None

Louisiana Land & Exploration__

500

Pure

Oil

2(1)

Seaboard

2(1)

Signal Oil & Gas..............
Shelly Oil

Socony Mobil Oil

21,500
14,075
12,000

2(1)

6,000

Standard Oil

2(1)

Texas

1,400

None

(N. J.)

None

Dominion Stores

None

9,800

Federated
First

None

Stores.

National

2,000

J—

600

Western

Auto

25,700

7(4)

140,510

6(3)

58,000

.....

...

....

2(2)

Supply

3(1)

Firestone

6(1)

400

4,300
34,100
29,980

Goodrich

6(4)

2(1)

4(2)

1
3

6,000

KD:

...

S. Rubber

—

11,000

9,600

Kimberly-Clark

35,600
35,000

Marathon Corp.

18,700
7,900

St. Regis Paper
Scott Paper

9,000

Crown Zellerbach

3(2)
3(1)
2(1)

2(2)
1

200

2,000

...

;

Kl)

None

;

...

Rayonier

385

...

7,300

American

8,800

3(1)
2 .<£ \:

47,600

3(1)

11,500

Tel.

2,000

________

Consumers Power

1,925

42,400
5,000

Delaware

2(1)

13,600

Florida

2(1)
1 -vl*'

10,000

Light
Hawaiian Telephone
Long Island Lighting

3(1)

66,000

Middle South

17,700

Montana Power

Duquesne Light

9,000

;,:t:

Power

New

8,000

Power

.....

England Electric System.

N orthern States Power.
Ohio Edison

4(1)

49,200

Oklahoma Gas& Electric

... ... .

____.

Pacific Gas & Electric

.....

49,158
11,400
2,500
15,200
8,000

stock

Allegheny Ludlum Steel-J:

2(1)

McLouth Steel

711 exceeded by over

1,875

2(1)

20,700

3(1)

2,400

1(1)
4(2)

3,400
500

None

1(1)

2,000

3(1)

Id)

1,000

Reynolds Tobacco

17,600

American

4(1)

36,500

2(2)

1,700
59,000

1,500

None

10,000

South Carolina Electric & GasSouthern California Edison.....

500

Southern Indiana Electric & Gas

3(2)

15,100

32,500

5(1)

38,800

None

6,000

Kl)

None
.

Power

None

12,526
5,400

None
1

None

1,200

2(2)

Newmont

Singer Mfg.
Sperry

1(1)

2,900

Trans Mountain Oil

;

1,000

Visking Corp.
Vitro

Corp.

9(4)

1,509
300

1
2

1,500

...

unique advantage of
Modern

1(1)

Broadcasting "A" & "B" 195,804
None

)

Twentieth

None

Zenith

KD
i

10(4)

-V ■- *- \

3(1)

Alabama Great Southern..

3(1)

2,000

Atlantic

5,000

Baltimore

Coast Line___\_
&

Ohio.

74,500

Chesapeake

11,100

Denver & Rio

5(1)-.

23,600

Illinois

Ohio.

Grande Western.

Central

4,600

page

Why not Get the

:•:'/•

INVESTMENT FACTS

SELECTED
AMERICAN

1,000

1(1)

2,300

mutual investment fund

...a

kimrn

sIcTbi'i "wiis

which

YEAR

Dealers: A request on
your letterhead

brings

1
1

11,100

2(2)

—

supervises

diversi¬

term

GROWTH of capital—and

INCOME.

for FREE copy

address

coupon

that

name

you

full month of

below and mail to

135 S. LaSalle St., Chicago 3,

;

BROAD

EDITORIAL

STOCK

STREET.
OFFICE:

1037

EXCH.
Y.

•

WOODWARD

AMER.
Y.

|
I

KALB, VOORHIS & CO.
N.

and

Selected Investments Co.

Please send

information

free prospectus and other

SELECTED AMERICAN *

SHARES.

service FREE.

of prospectus and

other information—fill in

And now—Financial

more.

service

MEMBERS

41,200

portfolio of American
securities, selected for the possibility of

Planning,
develops new, dynamic ap¬
proaches by giving the salesman new facts
about tax-savings, insurance, real estate invest¬
ments, equities, senior securities and high level
applications of mutual funds to financial plan¬
ning problems.
the

ONE MONTH FREE

24,000

1
VvfiHVf/fp

fat
:

Security Services

TIMES

tories and

3(2)

1,900

Railroads

100

2(1)

Everyi month—Advertising Materials (pre-filed
with NASD), Using the Tax Laws, Telephone
Selling, Prospecting, Sales Meetings, Case His¬

•

Continued

current

Kl)

13J500
8,000

...

popular

group

during the quarter was aircraft
manufacturing.
Boeing
enjoyed
particular favor, with six manage¬
ments buying
(including Massa-

fied

None

7,500

Century-Fox

Radio

interesting

when you have the

7(4)

Loew's

None

long

1,000

None

'■

None

4(2)

Broadcasting-Paramount

None

bought—

SHARES-inc.

3(2)

Analysis of Policy Toward

substantial prospects

99,000

—

;

More MUTUAL FUND SALES

2(2)

Pictures

than

about

3(2)

Paramount

stocks

14,675

13,600

Motorola

within

2(2)

Colum.

101,726

2(1)

pojicy
Investment

$17,460,000 against $15,646,000. On
the other hand, in the case of its
sister unit, Investors Stock Fund,
a
common
stock fund, purchases:
far exceeded sales—$23,470,000 to
$8,265,000.

3(1)

Amer.

■34,200

<;,•

Investors Mu¬
balanced fund, sold more

1(1)

6,600

Line

Radio, Television and Motidn Pictures

6(41-

5,400

None

17,500

7,220 i

None

10,000

Corp. of America

60
v;

Pipe Line__

...

Puget Sound Power & Light

Virginia Electric & Power

y:-;

Industry Groups

;;:5:

10,250

of Indiana—

(Mo.)—.

None

—

Rand

Union Electric

None
-

——

Mining

Interprovincial Pipe

3(2)

Public Service

——

None

103,700

Niagara Mohawk Power

10,000

None

9,600

Interchemical

2(1)

Light

divergence

displayed

16,100

3(2)

Similar
was

2(1)

9,000

None

7,000

None '*'■

9,700

Refractories—

Filtrol

17,800

Electric

22,000

Halliburton Oil Well

Harbison-Walker

None

Power

income, dollar purchases
/ sales,
$4.5 million to

$1.4 million.

•.

None

Gas &

exceeded

None

(W. R.)...

2(1)

Kansas

41,100

None

Grace

27,500

10,000

purchases of $1,039,-

1(1)

2(2) '
3(2)'

Kansas

■

......

•,

2:r-:

3(2)

2(1)

4,000

2(1)

2.500

None

•r'\* !•'

—

2(2)

None

2(1)

None

24,300

4(1)

2(2)

None

1(1)

82,900
138,000
General Public Utilities
16,000
Gulf States Utilities
46,100
Kansas City Power & Light____
10,000

llflOO

Utilities

Brooklyn Union Gas
Columbia Gas System—
Consolidated Edison (N. ' Y.)

None

•

Texas

Wisconsin Electric

None

Southwestern Public Service
•

1(1)

dollar

common

3(2)

10,000

Glidden

1,000

2(2) 1
None

6,400

None

"B"

Tobacco

Miscellaneous

None

15,100

900

Colgate-Palmolive

2(1)
1(1)

management

trebled sales
$3,783,000. In the case of the
group's B Fund, on the other hand,

tual,

2(1)

Diego Gas & Electric......

1,400

29,400

same

Diversified Group.

Liggett & Myers

3(3)
2(1)

20,600

Philip Morris

3(1)

——r

2(1)

200

40,000

16,700

61,600 '

(M.)

None

San

Industries

Lowenstein

24,000

4(3)

8,000

Burlington

the

Axe-Houghton A Fund,
devoted to profiting from capital
changes,
reports
total
common

sis

American Viscose

400

within

which is committed to the empha¬

Beaunit Mills

None

127,000

None

Wheeling Steel

16,500}

None

1(1)

Steel

contradictory
policies pursued by separate funds
group. The

Textiles

None

2(1)

6,000

Youngstown Sheet & Tube.

None

11,700

con¬

text of the respective funds' aims
is
highlighted by

3(2)

Potomac Electric Power
Public Service Electric & Gas..
Rochester Gas & Electric.—
■

The necessity for appraising in¬

1,000
3,000

7,000

Public

11,000

Performance Geared to Respective
Funds Character

13,600

49,200

5,700

Service* of Colorado

the latter

2,400 shares of Aetna Life
Insurance Co. and 5,900 shares of
Travelers Insurance Co.)
Capital
were

4,750

$11,591,$11,522,722 of

and

purchases. (Included in

3(1)

5(3)
2(2)

6,000

...

Tobacco

Kl)

3,600

aggregating

sales

10,900

18,300

19,100

None

591

Jones & Laughlin
Republic Steel

4(1)

3(2)

11,200

..........

Steel

5,600

——————

Inland

None

16,800

None

8,100

Utilities.

5,500

....

26,000

8,530

None

Light.—

2(1)
1(1)
-3- ..X'

3,000

;

5(2)
2(1)

value

million

Bethlehem Steel

20,000

None

$17
the

13,400

Steel

None

6,800
15,500
v;

1(1)

None

Columbus & So. Ohio Electric.^
Commonwealth Edison

4,100

■

Tel.

Illinois Light........
Central & South West

by-

having a total
of
approximately
the beginning of

11,700

Central

portfolio

General Capital Corporation. With
a
stock portfolio

Armco

3(1)
2

Public Utilities
4

the complete re¬
its

22,500

3(1)

7,200
21,200

2(1)

1
None

16,550
*

....

was

6(3)

8,200
6,000

International Paper
Union Bag & Paper—

In contrast

4(1)

None

fundamentally

vestment performance in the

Steels

2(1)

good future prospects."

■;

Paper and Paper Products
3(3)

most $4 million.

500

7,900

Goodyear

considers

sound securities of
companies with

gain distribution amounted to al¬

Rubber and Tires
2

policy of mak¬
ing no attempt to put-guess the
short speculative fluctuations of
the market and
purchases what it

transactions

Kl)

10,000

con¬

general

quarter, it engaged in/ the
remarkably high proportionate

3,000

Stores

explains: "Your management

market

1
None

.6,000

Tea

Sears Roebuck

None

Penney (J, C.)
Allied

7,200

Stores

May Department Stores
Montgomery Ward

200

Department

National

George A. Bailey, Jr., Vice-PresiV
of Sovereign Investors
Inc.,

arrangement

1,200

12,000

6(2)

26,800
27,000
9,000

Co.

Texas Pacific Coal & Oil-

None

Tffhk Car_..__—

None

Associated Dry Goods

700

2(1)

:if 1(1)

None

6,400
2,300

8,000

i'!;s''■'/./,

4(1)

1,025

Union

2(2)

2,000

New

3,700

3(2)

3,000

General Amer. Transportation.
York Air Brake

2,000

3(1)
6(1)

2,200

1,400
6,700

Southern Production

tinues its

3(2)

1,600

5(1)

2(1)

10,800
23,000

' ;/£

:'i

None

7(5)

12,300

\ACF Industries

8,000
7,600

'&£

None

dent

36,100

Pacific

2(1)
7(3)

Retail Trade

...

None

Oil

Union

1(1)

51,500
15 £00
24,400
34,700
25,900

Honolulu Oil

None

2(1)

28,700
4,300
112,610

...

None

12,700

None

...

26,000

None

.....

Canadian Delhi Petroleum
Creole Petroleum

None

3,000
____

13,700

Kl)

2£00

Railroad Equipment

2,400

Sunray Mid-Continent Oil—.-.
Texas Gulf Producing.

10,000

3(1)

None

60,300

Southern

400

None

KI)

None

3,000

.7,000

Standard Oil of Cal

Fund's Policy
Cautious

2(2)

Railway
Atchison, Topeka & Santa Fe
Chicago, Rock Island & Pacific

v-V

"jrMjr/t'-- pr"•

None

57,000
....

•

Kl)

95,000

Southern

5,000

Standard Oil (Ind.)
Standard Oil (Ky.)____

1,000
2,200
None

Pacific

2,800

None

500

Northern

)

Trusts

___IL'_r__

Western

2 >

None

500

Seaboard Air Line—

None

Norfolk

11,900
25,500

Continued from
page 21

No. of

Kansas City Southern
N.^Y., Chicago & St. Louis

51,500

2,700

4(2)

•2,000

N£>. bf
Shares

Is*

15,960

...

1,800
29,000

800

Sinclair Oil

5,000
29,893

5(1)
2

None

Service

Shamrock Oil & Gas__
Shell Oil

8,300
3

None

3(1)

None

10,000

-Sold-

No. of

3,800

t--,

None

Monterey Oil
■; Oil
Phillips Petroleum
Royal Dutch Petroleum

11,000

2,500

Ohio

16,200

1; //•'

Refining

Gulf Oil

18,356

23,800

Continental Oil

30,200
38,500

8(3)

Petroleum

British

21.624

Atlantic

Trusts

CF8

Nam*.

(ASSOC.)

HANOVER

BLDG..WASH.

2-9580
5,

D. C.

City

.State.

Chronicle

The Commercial and Financial

Credit, to the tune of 10,500

cial

Continued from page

shares.

Food

Dominated
By Cautious Buying

selling.
makes the

one

the
only
United Aircraft (which

engines for Boeings
similarly bought-by six
managements for a total of 2<,5ou
shares (of which M.I.T. accounted
for 7,500 shares). Douglas was also
strongly bought.
': Also flying high were the air¬
lines, Eastern and American still
attracting management buying.
Among the building issues Masonite, National Gypsum, U. S.
Gypsum and National Lead shared
the
bullish limelight.
American
Radiator, on the other hand, was
liberally sold by six managements,
B-52) was

buying occurred in

selected chemical issues. Dow was

managements

found

Carbide

funds,

new

being sold by three man¬

duPont,

agements.
from

one

purchasing

buyer among its five

has

which

switching

been

recom-

A mutual fund

stocks

McKesson
&
Robbins,
Davis, Sterling'Drug, and
Bristol .Myers. Smith, Kline &
French Lab. and Lily B were

A highly

Merck,

Fundamental
Investors,

Investment
Inc.

Elizabeth 3, New Jersey.
CFD-8/9

selling
come

this

your

United In¬ Business Machines,
bought Commer¬ Cash Register.

Oklahoma

Gas

■

For

INCOME and '

BALANCE

CAPITAL

and National;

VENTURE
FUND
A

Mutual

investment
sis

Fund

with

program

possible

balanced

with

income

empha-

consistent

long-term growth.

A Mutual Fund investing in
Atomic, Electronic and

other Companies , selected
GROWTH possibilities.-

Capital Venture Fund, write:

20 Exchange pi., n. y. 5

Common Stock Investment Fund
..

Investment

are

„

investment dealer

objectives

this

Fund

possible

long-term capital and
growth for its shareholders.

Prospectus

upon

request

Lord, Abbett & Co.
FUND, INC.

New York

—

Chicago

—

Atlanta

—

Los Angeles

Television Shares

Management Corp.

TEXAS*FUND
Chicago 3, III.
a mutual fund investing in securities of the southwest

115 Broadway, New York 6, N.Y., |
—

prospectus may

be obtained from

| Address
I

City-State.

investment dealer

Principal Underwriter

TEXAS NATIONAL BANK BLDG., HOUSTON 1, TEXAS

CApitol 7-0211

Teletype HO

—

566

Prospectus from

TEXAS FUND MANAGEMENT COMPANY
Investment Advisor and

your

for

and other information about

Fund

DECIDING

above.

For GROWTH..;

ELECTRONICS

Name

Electric,

SAN FRANCISCO

KNICKERBOCKER SHARES, INC.

income

and

Montana Power, Ohio Edison, and
as
mentioned
above, San Diego

ESTABLISHED 1924

Knickerbocker Fund

TELEVISION-

Texas

Southwest,

-s'X

suggestion

135 S. La Salle St.,

and

issue.

Fund also

get the booklet-prospectus and
record of this Mutual Fund
from

included

Russ Building

For Prospectus

BEFORE

issues

Central

Delaware Power and Light, Com¬
monwealth Edison, Middle South,-

Prospectuses from your Investment Dealer or the

Selling in the Metals

timely

investment

the
section.

was

BOSTON

with

selective
utility

the

send
investment dealer or
and Company, Inc.,

descriptive prospectus

Hugh W. Long

Utilities,

incorporated

■■■

24 Federal Street

decisively liquidated issues.

In the mining and metal section
liquidation slightly overbalanced
buying. Reynolds was sold, by six
funds, and bought by none; Con¬
solidated
Mining
and Smelting
was closed out by two and bought
by none; and St. Joseph was sold
by three companies, without a
was sold.
buyer. Buying predominated in
Elsewhere in the finance, area, Anaconda, Kennecott, Aluminum
in
C.I.T.
Financial
the
buying Ltd., and Vanadium.
overbalanced
the
selling,
with
Purchasers took over in all three
United Income Fund adding 11,000 office
equipment stocks in which
shares. A closing-out of its hold¬
there
were
major transactions,
ing of 8,500 shares by Selected
namely Burroughs, International
American Shares dominated some

Diversified

this ad to your

Favored

Parke

the

For free

highly

„

interesting feature of
period was the evidence of
purchases of life insurance com¬
pany stocks, which with a 500%
Inc. jv/i'jr rise in the interval since 1949,
have out-performed most of other
For free descriptive prospectus send
groups.
Lincoln
National
was
this ad to your investment dealer or
bought by six managements (the
Hugh W. Long and Company, Inc.,
de Vegh Fund, one of the pioneers
Elizabeth 3, New Jersey.
in this group, adding 200 shares).
CFD-8/9
Travelers was picked up by four
managements, newly by two; Con¬
necticut
General
by two;
and
A balanced fund
Aetna Life by three managements.
Not a single share of these issues

investing in common

Also
action

The Blue Chip

sellers.

Union

had

Reduction

with

Eastman and
two buyers

Both

sellers.

Air

performer with
buying and

star

the

far

seven

up.

National

chases.

Some good

pletely

cose.
Gas & Electric. On the other hand,
this comprising one of the shares; and to Quaker Oats, newly
Tobacco,
one
of
the
most considerable liquidation was evi¬
acquisitions wherein these bought by two companies.
favored categories, witnessed denced in Union Electric of Mis¬
funds used their new capital ac¬
Machinery Stocks Well Bought
strong buying
in Liggett and souri, Puget
Soundi Niagara
quired through a rights offering
Mohawk, Kansas Gas & Electric
Substantial buying was attracted Myers, and Reynolds.
during the quarter.
Rochester
Gas
Electric, and
to the machinery and industrial
Carriers Encounter Selling
GM Sold; Ford Bought
Virginia Electric.
equipment category. Nine funds
The rails, which have been so
In duPont's "cousin," General purchased 95,300 shares of Cater¬
Strength in the rubber group
^sticky" during the recent stages
Motors,
the previous quarter's pillar Tractor, three of them con¬ of this bull market, ran into con¬ was featured by U. S. Rubber and
stituting new buyers. One fund
Goodrich.
selling was extended. And Ford
siderable selling following their
closed out its 4,000 share holding
continued to enjoy its contrast¬
display of strength during the
The Strike-Pervaded Steels
of
the
issue.
23,400 shares of
ingly; favorable reception, with
preceding quarter. Issues bearing
Monarch
Machine
Tool
were
four
funds
picking up 64,500
In view of the strike-beclouded
the brunt of the selling included
shares at the below original offer¬ bought by two funds, with no I Southern Pacific, Union
Pacific condition of the steel industry
sellers. Joy Manufacturing, which
ing price levels. The participating
during the period under review,
has enjoyed an extensive -market (vyith three sellers and no buyers),
buyers were Massachussets Inves¬
Seaboard Airline (of which 95,000 the experts' market policy toward
rise during the past few years,
tors Trust (40,000 shares as a new
shares
were
unloaded
by two this group is particularly interest¬
was bought by two funds and sold
acquisition), Wellington Fund
managements), and Rock Island ing.: Consistent withf the Wall
by one, the buying volume total¬
(20,000 additional), Pine Street
(60,000 shares of which were; dis¬ Street adage "Don't sell on strike
Fund (1,000 new), Investors Mu¬ ling 10 times the sales.
posed of by seven funds). Carriers news," most of, the issues emerged
tual (3,500 additional). A total of
attracting buying were Norfolk with additions to portfolios/ Buy¬
Bullishness on Containers
17,000 Ford was liquidated, all as
and
Western,
Chesapeake- and ing was particularly prevalent in
Confidence
strongly
marked
a complete closeout: 15,000 by In¬
U. S. Steel and Jones & Laughlin.
portfolio policy in the container OhiQ,^ and Nickel plate.
corporated Investors, 1,500 by Axeand glass group. Pittsburgh Plate
Houghton A; and 500 by AxeGlass, Owens Illinois Fiberglass,
Houghton Stock Fund.
Anchor Hocking Glass, and Con¬
Scattered purchases occurred in tinental Can, were all purchased,
Chrysler, with no sales. Stewart without any offsetting sales.
EATON & HOWADD
EATON & HOWARD
Warner, Fruehauf Trailer, Clark
Drugs Favored
Equipment, and Borg Warner were
STOCK FUND
BALANCED FUND
In
the
drug
area,
American
decisively sold.
Home Products was bought by
Managed by I
Blue-Chippy Life Insurance
four funds, two of them newly.
Stocks Still Bought
Other
issues
favored
included
EATON & HOWARD

three funds
offsetting pur¬

showing partially

quite

few

with

entirely;

sue

200,

eliminated the is¬

three of whom

Sold

Heavy liquidating struck several
food stocks. Four companies com¬

Action
in
the
merchandising
mixed. Buyers pre¬ area—in this pre-pre-Christmas
mixed. Sears *[
dominated strongly in Shell, At¬ period—was quite
lantic
Refining,
Cities
Service, (a post-split issue) was heavily
sold, as were Allied .Stores and
Continental, Monterey, Gulf, Ohio
Oil, Phillips, Royal Dutch, Sun- Penney. Federated, National Tea,
ray,
Standard of«>dndiana, and and Dominion Stores were picked

Action in the petroleum section

was

closed out their holdings British Petroleum (in the amount
Dairy. United Fruit of 250,000 shares by three funds).
Sellers predominated in Creole,
mended by some advisory serv¬ was sold by four funds, one repre¬
Pure Oil, Socony, Honolulu, and
ices, the liquidation strongly out¬ senting a complete elimination.
Neither of these issues attracted Louisiana Land and Exploration;
weighed the acquisitions. Funds
Standard of New Jersey, Texas,
disposing of this issue were U. S. any buying. Contrastingly, trans¬
and Union of California.
and Foreign, Dividend Shares, In¬ actions were wholly confined to
In the textile group, liquidation
vestment Co. of America, and Tri- the buying side in Armour, by two
was
controlling in Burlington,
Continental.
Adams bought 300 funds: to Libby McNeil & Libby,
Lowenstein, and American Vis¬
shares and American International by two units to a total of 30,000

Investors Trust to
50,000 shares) and

tune

<•/.,

Aggressively

Issues

Bought and

Funds' Pcli:y
chusetts

Thursday, August 9, 1956

1596)

Philadelphia 3, Pa.

Volume 184

Number 5558... The Commercial and
Financial Chronicle

-tr

(597)

V." i

be led into

anything by tall stories
exciting news
take
the
longer view and help your cus¬
and

Securities Salesman's Corner

—

Fundamentals of Security
Salesmanship
VII

•

bought at the right time. You
too much for
anything.

pay

must

avoided if you

of tne neophyte sales¬
who; wishes to obtain back¬

man

can

ground and knowledge as a secur¬
ity salesman and advisor. If he
wishes to go further with these
studies of technical market
analy¬
sis and chart reading after several

going

tohelp -your clients invest their
funds profitably. This is
a
very
difficult subject to approach because the
tendency or practically

years

By OWEN ELY

California Electric Power
Company

Airways Stock

California Electric Power sells
electricity in parts of south¬
eastern
California, and (to the extent of 2% of
revenues) in
southwestern Nevada.
The
company also sells ice in Imperial
county for the refrigeration of
perishable crops, but this business
contributes only 3% of revenues
and will be discontinued

Offer Underwritten

in the scope

This

are

Braniff

perts and statistical analysts. Such
a study in
my opinion is not with¬

-—What To Read and
Study—
A good
investment must aiso be

Chas.

E.
Beard, President
Airways, Inc., has

Braniff

nounced that the
company

ing to the holders of its
stock

rights* to

of
an¬

end of 1956.

is issu¬

$10

•the

My main objection

receipts to the company from the

regions served in Inyo, Mono and Kern

sale

desert

business

then

per

ing" and "longer term invest¬
ing." There are several excellent

to direct the salesman's attention
more toward the
"trading" aspects

revenues.

subscribe to three shares for each
five shares held of record on

ing but I
out

to any of these methods of select¬

this

record

day

least

the

ning to offer to

notice

whether

Exchange,
increases

decline

Become

the

Receding volume

does

at
See

"bearish"

Increasing
indicates

volume

power

Become familiar with the
daily
record of total issues traded. Dur¬

ing advancing markets an increas¬
ing index total of issues traded
denotes

a
broader public partici¬
pation and generaly higher levels
for the market as a whole. A de¬

clining

total

indicate

may

the

market is nearing a period of in¬

digestion

"topping out."
The ratio
of "new highs" to
"new lows" is
usually another in-r
dicator that helps give you a clue
to
"buying power" and "selling
pressure." During periods of ac¬
tive
public participation and a
a

strong

upward market the ratio
of ^new highs" to "new lows"
may

with

accumulation and after

ket

decline

lows"

the

usually

ratio

exceeds

mar¬

"new

the

"new

highs."
new
can

have

ing

general "leel" of the market

meaning t®

whole. ' The

is to

keep your
planning on an
will

you

not

you

in obtain¬

purpose

this

thinking and

own

keel

even

become

that

emotionally

disturbed by normal market fluc¬
tuations which are
constantly oc¬

curring in the market and
vidual

-issues.

Also

in indi¬

this

back¬

ground will help you to reassure
your customers and give them a
better
mal

understanding of the

fluctuations

their

nor¬

securi¬

ties.
All these factors should be

sidered together—there is

con¬

sure

to determine a market top or
a
bottom, but you can learn to
distinguish between normal fluc¬
way

tuations

which

are

based

upon

supply

and demand (psycholog¬
motivated) and emotional
explanations of market gyrations

ically

such

as we see

in newspaper head¬

lines.
I

the odd

and

marketwise

the

com¬

the

average

whole?

Is this

good

study of these market factors is

considered?

lot

ratios of purchases

sales, and methods of timing
reading used by the ex¬

and chart

shareholders

rights.

The

the

subscrip¬

been

received

"selectivity"

from

announced

William

the

The

exercise

better in tne years ahead than if
were not so.
But better

you

learn

can

turning

points

distressed

still,
distinguish

industries

and

situations, or recom¬
companies in in¬

mend

stocks of
dustries
that

are

intrinsically,

sound but have been under pres¬
sure marketwise for a protracted

period of time, you will find that
the old adage "A stock that is well
bought is 90% sold" will work for

nearly

you

every

Objective

The

emotionalism

when

wrong

comes

selecting situations, also
"timing" their purchase and sale.
The good buying, the sound buy¬
ing, is based upon a study of val¬
ues, of future prospects, and it is
done

when the general public

heavily participating in ac¬
quiring the subject investment.

Don't follow the crowd is
usually
a

good rule to follow—anticipate

the crowd is

better

one.

Most of tne -study you will need
for this work you can
accomplish

just by following your daily pa¬
per, the offerings of various dealer
firms

and

houses,

and

of the
mend

the

counter

historical record

stocks you wish to recom¬
follow as a study project.

Notice

particularly the
in

move

and

over

the

cycles,

general

disfavor.

Make

way

stocks

in style trends,
public favor and
a

list

the

de¬

pressed industries marketwise by
groups and those in favor.
The
statistical
will

services

furnish

Keep

you

record

your

with

this

office
data.

of these

changes.
reading will
almost automatically keep you
up
with these rolling reversals and
advances industrywise which seem
In time your current

to be

ulated,

evident in today's' reg¬

investment

type,

stock

you must

have patience and work

this too.

pay

Stay objective—don't
too much for anything—don't

oranges,

Industrial

activities

include

the

manufacture

Base at San
Bernardino, March Air
Riverside and Edwards Air Force Base at Muroc.

near

revenues

$1.5 million

The rapid growth in
population and industry is reflected in
gains of 181% in kwh sales and 243% in electric revenues in the

Over the past five years, kwh sales of
electricity
-have risen at the rate of 11.6% a
year, but company officials bc-

ilieve this rate
period.

may

increase

12.5%

the

coming five-year
•

Capitalization, including the proceeds of the recent sale
300,000 shares of common stock, is approximately as follows:

Blakley, Chairman of

Percent

Long-Term Debt
Preferred Stock
Common Stock

recently
an¬
$83,000,000 expansion
including
orders
for

ropolitan"
which

aircraft,

will

Equity (3,200,000 shares)

will

-■"r-"

offering and of

together
the

with

the

connection

with

has

funds

general
this

expansion

program.

Braniff operates approximately
16,400 route miles of which 9,300
are
domestic and 7,100 interna¬
tional.

The
company's routes extend
through the Western Hemisphere"
serving, among others, such prin¬
cipal cities as New York, Wash¬

the Dam.
In

Des

Moines,

St.

Louis,

Oklahoma City, Dallas, Ft. Worth,

Houston, San Antonio and Denver
in the

United States and Havana,
Panama, Lima, Sao Paulo, Rio de

Janeiro
South

and

Buenos

Aires

America.

The

company's

operating

rev¬

for 1955 amounted to

$46,-

798,650

and

income

net

was

$1,-

100.0%

Share Earns.

Dividends

93c

67.5c

1954

1953

1952

1951

:/;>■
:

•'/

v;/'"

-v.

recent years the company has

installed substantial steam
generating capacity, so that two-thirds of electric output was ob¬
tained from steam plants in 1955 compared with less than onefifth in 1952.
Receipt of additional power from the company's
own hydro stations would reduce the amount of purchased power,
which last year was about 13% of total output. Also, substantial
additional steam capacity is being constructed—a 60,000 kw unit at
San Bernardino is to be completed in 1957 and construction of an

ington, D. C., Chicago, Kansas
City, Minneapolis - St. Paul,
Omaha,

relatively sharp fluctuations in share earnings in recent
years may be ascribed to (a) repeated equity financing, designed
in part to raise the equity ratio, and (b) the effects of recurring
droughts on the supply of hydro-electric power. Due in part to a
continued drought, the amount of firm and interruptible hydropower obtained by the company from Hoover Dam declined from
298 million kwh in the exceptionally good year of 1952 to only
63 million kwh last year, and the company's own hydro
output
dropped from 294 million kwh to 207 million during the same
period.
Because of heavy precipitation on the Sierra Nevada
watershed last December, the company expects that generation
at its own hydro plants will be above normal for the operating
year beginning June 1, 1956.
While the unfavorable conditions
at Hoover Dam continue, there has been very heavy rainfall re¬
cently in the Denver area which may improve the water level in

$40,000,-

which

•

The

the

will be used in

company,

commence

loan

/v'y.

nine

from

9.5

36.9

follows:

latter

for

proceeds

long-term

enues

12 months ended 3/31/56
Calendar Year 1955

been negotiated for the company
by F. Eberstadt & Co. with a
number of insurance companies,
of

4.2

____

$86.0

turbo-prop and
jet aircraft, de¬

which

The

1959.

the

and

year,

Electra

Boeing 707

liveries

deliveries

commence

this

Lockheed
five

The record of earnings and dividends in recent
years has been

seven
Douglas DC-7C
"El
Do¬
rado" and five Convair 440 "Met¬

part

49.4%

Short-Term Bank Loans

program,

additional unit of the

same

size will be initiated in

1957.

Early last year the company received a rate increase, equiva¬
lent after taxes to about 18c a share, which accounted substantially
for the increase in earnings from 73c in 1954 to 91c in 1955. De¬

earnings of about 10% resulting from the
stock, the management has estimated earn¬
ings for the calendar year 1956 at 96c on the increased number of
shares.
Based on this estimate, at the recent price of 14% the
spite the dilution of

recent sale of common

668,398. For the six months ended

price-earnings ratio approximates 15.6%.

June 30,

recently raised from 70c to 76c, making the yield about 5.1%.

were

1956, operating

$25,920,200

and

revenues

common

will

have

$2.50

par

With Columbia Sees.

stock

the

2,948,119
value

standing; paid in capital and

out¬
sur¬

plus and earned surplus will total

approximately

was

$34,800,000.

Loren Brown Opens

(Special to The Financial Chronicle)

Giving effect to the sale of the
additional

The dividend rate

net income

$1,006,100.

company

Timing will become something
you
play by ear eventually but

growing

company

nounced

000

As you work and learn notice
how
many .times
high pitched

the

the Braniff Executive

stock

Become

Springs,

postwar period.

that all stock offered
will be taken at the subscription

time.

Palm

from military installations exceeded
last year, the best level since 1940 or
earlier.

Mr.

Committee,
today more so than ever. It means owns
approximately 7 % of the
exactly what it implies. A sound company's
outstanding common
stock, bought at the right price stock, and is the
largest single
(or I should say a fair price and holder other than
the
Braniff
not excessively high) will perform
Foundation.
this

Edison;

Farming in the territory includes

;

Electric

assures

Mr.

areas

Force Base

Blakley's full additional sub¬
scription privilege does not affect
the primary or
additional sub¬
scription privileges of other stocl
holders and is subject to allotment
but

areas

mountain

Inyokern, Norton Air Force

being

and

cement; the production of soda ash, potash and
borax, and other
chemical extractions; and the
mining of gold, silver, iron and
tungsten.
Important military establishments served
by the com¬
pany for some years include the Naval Ordnance Test
Station at

Blakley exercising in full his
primary right of subscription for
77,562 shares and his additional
subscription privilege for the en¬
balance

urban

lemons, dates, deciduous fruits, alfalfa, cotton and
vegetables; and
there are related
packing, canning, processing and by-product

Aug. 7 that subscriptions have

the

desert

the

mountain

operations.

Co.

from

3:30

F. Eberstadt & Co.
&

Other sections vary
these counties to

and Barstow.
The company also controls certain
Mexican subsidiaries with
annual revenues of about
$2.3 million, but the accounts of these
subsidiaries
are
not
consolidated
with
those
of
the
parent
company.
i
.

Eberstadt

parts

Hemet, Corona, Blythe, Victorville

may

(EDT) on Aug. 21, 1956. The
offering is being underwritten by
F.

western

Counties.
The northern
include several important industrial
operations while
sections and southeastern desert
regions have im¬
portant resorts.
Principal cities served include San Bernardino,
served jointly with Southern
California

ap¬

p.m.

price.

You hear the word

markets.

have

purposely avoided using
other supply demand studies such
as

as a

not

Total volume, new highs,
lows, total issues traded, all
a

What is
of the stocks in

time to recommend the issue after

strongly in favor of the "new
highs." As distribution takes place
this ratio
drops—during periods

industry?

industry

pared
market

The

offered.

the performance

advances

stronger buying

look like there may be
"smart selling" while things

that

de¬

than selling
pressure, and decreas¬
ing volume on advances some¬
times indicates distribution.

will

subscribe subject to
allotment, for
shares not taken through the ex¬

recovery?

stocks in their

declines.

Aug.

1956.

so
good?
Are they mod¬
tire
erately priced in relation to other

clines indicates less
selling pres¬
sure, ana is generally considered
part of a long-term "bull market
pattern."
Increasing volume is
considered

period

look

pat¬

customers.

offering been over-exploited?
they at a new high and, if so,

some

advances.

accustomed

each

figures.

volume

shrinks
terns.

the

Keep

volume

these

tion warrants will expire at

Have the prices of the stocks
you
Are

total

Issues

your

Is the industry in
prosperity, decline,
are

Stock

ercise

factors and

Indications:

the

Learn to check the past market
record of the issues you are plan¬

relationships daily:
Volume

than

and selling
longer term ap¬

As to Individual

security
"analyst
advisor" to his clients.
Advising
traders for the short
swings is an¬
other specialized field
entirely.
Hence, it is important to study

following market

buying

proach.

scope of the work of the
salesman who is also an

the

security

rather

going to leave them
discussion. "Timing"
longer term is within tne

for the

so.

ing buying and selling opportuni¬ proximately $11,055,450.
Share¬
ties is thac they may be inclined holders are
given -the right to

chart read¬

•

principal service areas are in San Bernardino and
River¬
side
Counties; this territory accounting for about
three-quarters of
electric

share for 1,105,545 shares of
additionalcommon stock. Gross

the

should do

books and courses

at the

The

common

student of "trends"
(espe¬
cially at the beginning of his ed¬
ucation) is inclined to confuse the
issue between
"short-term trad¬
every

Utility Securities

MORE NEXT WEEK

By JOHN DUTTON

ARTICLE

Public

tomers to understand that this is
the road to investment success.

HOUSTON, Texas — Loren E.
Brown has opened offices in the
San Jacinto Building to engage in

MIAMI,
stein,

Fla.—Jacob P. BlueHoltzman, Marwin

Joseph

Sol T. Pfeffer, Harvey
and Raymond M. Valinow
with Columbia
Securities Company, Inc., of Flor¬
ida. 3839 Biscayne Boulevard.
Morris,

Sterman,
quette

securities

business.

in the past was

Mr.

Brown

with Rowles, Win¬

are

ston

Corp.

Co. and

Central Republic

The Commercial and

,(598)

' ' '
?
Continued Jrom page o

—-

Pnlirir

FPAHA Iff If1

~ and the smaller industrial states
can prosper only in an expanding
world
economy
in whicn trade
ernments, at least, would not'in- can fiow with relative freedom.
terfere to deprive private persons
And such conditions are also
of their accustomed freedom of jmp0rtaht for other members of
ec°nomlc action.
the free world. Our resources are
Fourth: The limited number of not sufficient to afford the wastes
independent economic entities was that come from general and griev-

JUvUlftwAUAV

should

economic base for defense

expand
dominating consid-

A third and

thf

political health of
Obviously, this
not depend solely upon ecothe

world

free

does

VllVjr

of the 19th century system. Large parts of the
will
hardly
world found their place in the
flourish
if it is not associated prevailing scheme
as European
with an expanding economic sys- colonies.
And, except for the
tern.
An inescapable fact is that United States, most of the mdepolitical system
survive,
let alone

world

free

the

time, a further aspect

At the same

nOmiC progress

peoples everywhere have come to
believe
that
it is
possible to

of economic

change the conditions

better! We

life for the

can recog-

inadequate

grossly

with

been

has

belief

this

that

nize

formed

pendent nations outside of Europe
effectively dominated in

assure

their economic conduct by^ the,

regources

European powers.
All of these elements of the 19th
century pattern have been drgs-

These, then,

American—and
in

ex-

panding world economy: (1) our
economic requirements,
(2)
concern for the
defenses of
the free world, and (3) our recogown

tween
nomic

progress.

■

• •

international imbalances

aiiow.

J? ^e°s[djusted3 automatically

Whatever

its

deflation

d
..

this is a noliti-

defects

wmch

likeiv

appears

More'over
h

the

things

with

lodging to the 'orderly and relatively impersonal
workings of
the 19th century world economy,
Here was a grand design indeed,
and, to it we owe much of out
present well-being., But its foundations

have

shattered

been

world wars, by a

depression
of unprecedented severity, and by
the appearance of a rival economic system that dominates 900
million people and one-quarter of
two

the surface of the earth.

essential

first

factors.

political fact:
peoples were willing and governments

was

able

were

temational
corrected

imbalances

almost

in-

allow

exclusively

domestic adjustments even to the

point

ment.

store

long

Other

20th century, the system could not
function as it once.did.. Today, we

achieve similar ends only by

features

work-

was

cooperative

effort

the damage to international economic institutions; we have had a
measure of success already.
But
we
must recognize that positive
actions b.y and among the nations
are and will be necessary, and that

of the times.

how-

were,

„

out* estfecianv01
enabled

daries with

•

private capital

boun-

such relative facility,

This depended on a whole complex
of institutions and underlying as-

.sumptions.
standard

There

and

the

was

the

London

gold

money

of Ensland

the Bank

kinds

IV,
of

mat^^ake

action
to

the

must

^lS
l

•

the
.

•

^0^^fnrTh.if °J^ri

international

across

market

and

the nations. We need not
despair about repairing some of

among

almost as crucial to the 19th
What
century pattern.
'ifree

move

that it served. But under the conditions of the second half of the

ever,

which

order

unemploy- these actions will have to square
this attitude with the political practicabilities

prevailed, the system

international

the

large-scale

able.

capital to move~

across

the 19th century. We should recognize its virtues and the purposes

conscious

century system rested

several

The

changes have also

boundaries.- In
many cases, the potential returns
do not compensate for the added
risks of changes in national monetary, legal and economic, policies,
It is out of the question to reireely

can

Century System

The 19th
19th

;

™

The

basic

These

with induced private

back

For

At the recently concluded Geneva

and
other United States made an important
their growth, contribution to this commendable
whiCh is vitally important for its outcome, as did the 21 other naown bdhtj will dibU piUViuc extions
that
negotiated
the
new
Uvyll sake, will also provide
X10I1S
Ifldl
I1C5Ovvu
ljlX0
X10W
equipment

products.

First, iUs evident that the

industrial agreement;
agreement.
The General Agreement on Tariff
d Trade can be
d
more
if.f.s and Trade can be made a more
arid frills to supplement the do- effective instrument through the
mesjlc savings of the less devel- establishment of the administra°?ed countries. This is the field ^ve machinery of the Organizem.Ye®
an - aid policy.
tion for Trade Cooperation. This,
for

markets

ex?orts* But achieve of capital
ex?orts- But to transfers it will require adequate

States economic policy

United

however, still awaits approval by

nV the Congress.

v^stm^a^^d mSic^

_Jr

e+cZ c

^fnWentconflkt Ltween

such

There is now
i

should facilitate such cooperation.
..
dppadp _in£ WnrM
in sum, the decade since World
War II has seen much headway
in removing the obstacles to trade
among the free nations. Doubtless
much more remains to be done
and further progress will have its

difficulties. But the efforts thus
broad public sup- far,
especially :« through: such

the United

SSSi

vnr\i/^1v dt'mx/ind'
f0
indeed
ranidlv^rowin^
eSiSes
eSmL fn Western ^tirooe
^utboe

Urtrrinrc*

for

States

awnripe

TMF

GATT

i o?f

OFFf
iVv
—

liberal trade policy. For six dee- EPU and the Coal and Steel Com-

veswneni ana dlo poucy.

mumty have produced important
results. In this field, the task for
the future is to build on these

the
ted
has
effect on their owecono-

ades after our Civil War, high
protectionism was United States
Public Policy, with only one period-of deviation. In affect, th s
P°s'tlon
bee" reversed. We

mies than any other single outside

f?eS^r^ls Sd hmS

Economic progress of the free

V
For

mo«

Thus

0„' ho'w^

the

nrns

Sta?eSP

fact0r

om.y

countries

manv

perhy

ereat deal denends

the^United^

States

econ-

is performing.
itc

nmi;

YU
on a

second

i,?volve^ I do not overlook for- ngajor factor: the flow of capital
eign criticism of the^ peril point among its members. Until recent

and escape clause .features of
American tariff legislation or of
tTAuc2P
the protection we accord to Amer|can shiPP?ng. Buf the broad patllve^ minor recessions ana tnese tern of movement has been^steada^A

Fnr

foundations,

strong interests and emotions world also depends

decades, this essential volume of
capital was provided almost entirely by private investors. Such
private investment is^ still large,
The' amount invested abroad by

y surr"ouPtea-

Uver
^Vs
ac Y""
y
^ «v?
Jv. consistently at nign levels,
Ams.nas taKeP Place in,a sysfr€e enterprise which is
nisw dynamic, ine tax system
_eKs. t0 tofle.r a ^eadlpcss to innovate an(j
takc risks. And
our
st laws and othe:r measures a^e "^signed to maintain the
is®?^tlal vlgor of the c°mPet"ive
rriuij
An.er,® 1S general agreement
fmerits of the free enS sevsf,,m Ior me. un!^e(J
ai
s,
government nas a large role m
assu^lng economic stability at high
levels ot .activity. Since the aepression, the Federal and state
governments have adopted a

iiy toward liberalized foreign private United States sources
trade.
alone has been averaging about
the area of international $1.5 billion a year. About 80% of
monetary policy, I need only re- this amount goes to Canada, Latin
call that Bretton Woods was held America and Western Europe,
at an American invitation. -Wev: But many of the earlier condisought, there, among other things, tions favoring private foreign infor agreement on techniques and vestment no longer prevail, espeprocedures that would substitute, cially in „some of, the countries
under modern conditions, for the most in need of capital for their
automatic features of the older development. The reasons for thii
international, monetary s-y s t e ra. have already been mentioned and
The International Monetary Fund need not be repeated. Doubtless
agreement embodies this ap- much can and should be done to
proach.
The hopes of Bretton attract more private capital for
Woods have not been fullv real- foreign investment.
izad» of course. But the work of
There is little prospect, howthe IMF and the economic re- ever, that this means alone will be
covery of Western Europe put us adequate to meet the pressing
much closer to eliminating the need for foreign capital. Indeed,
wasteful system of exchange re- the necessity for some special
strictions. Further stens toward measures was foreseen as early as
whole s®rl®s 9f staoilizing meas- the kind of world envisioned at 1944 when the International Bank
Q

and

ures

eco-

nomic health of the free world
will depend heavily on the domestic economic policies of its
members. The goal must be to
create conditions favorable to a
high level of economic activity

■

rj
y T„ •*

u s

devices

•

supplement

the traditi°nal central banking
controls. These include the pro-

well-bein"

jLeas?KJ"

meetings, the results included

ards' tney must imPort much in" valued at about $2.5 billion. The

dustrial

sys-these three categories. (1) do-

international

undermined the conditions which

look

can

funda-

have sought to progress by a Europe. Nearly all the Western
European countries have freed *
more tban two decades now
half or more of their dollar imbasic American trade policy has Ports from quantitative restricbeen expressed in tariff reduc- tions. In view of the strong retions unaer the trade agreements serve position .of many foreign
legislation, not in new tariffs, countries, the United States has
Our 1930 tariff structure has grad- hopes for toth^^rly progress
ually been revised to bring the toward convertibility ana nonaverage tariff on dutiable imports discriminatory trade,
ctown by about 50%. The GenSix nations in Western Europe
eral Agreement on Tariffs and are also engaged in a related, but
Trade (GATT) was the result of more basic, effort toward closer
American initiative. The GATT's economic integrations, building
provisions for the reduction of on the existing Coal and Steel
trade barriers, to which 34 na- Community. If they succeed in
tions Subscribe, represent prog- creating a common market, the
ress toward a freer system of import will be far reaching indeed
world trade*
for political as well as economic
variety of routes.

omies and lift their living stand- further concessions affecting trade

effects, of-this

the

seeking to advance the ob- creation of a large number of new
jective of an expanding economy, independent states in the former
ft is essential to assess our situa- colonial areas
Their programs
tion wisely.
We need to remind for rapidly developing more balourselves constantly that the tre- rnced economies rely heavily on
mendous- events o
this century government planning.
I
changed,
mental ways.

pede the process
of economic
growth in the less developed
countries. To develop their econ-

have

•

cnange on ine international sys mestic economic policy; (2) trade por*
tern have been multiplied by the and monetarv oolicv* and
in- Pu

ni
.,

that critical shortages of
and skills shall not im-

ment and the steady functioning panding

be-

health and eco-

political

o Q ® or governments
° ^ , e_ ec governments prepared
peoples oi governments pieparea

our

nition of the close relationship

the interlock-

are

world—interests

„-ee

departures from the principles
0f liberal trade policy. We have
Seen, too, that "beggar - your neighbor" economic policies benefit only the predatory members of
the world community.
A third objective must be to
oug

were

appreciation of the difficulties in tically altered.
the way.
But we should be unResnonsibilitv
forgiveably blind if we did not
State Kesponsib ty
understand the far-reaching politIn most democratic nations toical import of this new factor in day, the State has assumed the
world dlldUb*
Oriu
affairs.
burden ot-assuring full employ'
ing reasons for the
g

Thursday, August 9, 1956

...

-Kingdom, Germany - and Japan- and toward keeping swings . in pean and British Commonwealth
.have developed
economies that economic activity within close trading, area to move toward con-*
are heavily aependent on outsiae;, bounds.
,
'
vertibility.
sources of food and Taw materials
1"
X As we see now,"liberalization of
and on foreign markets for their
Now let me turn to the field of dollar trade has proceeded a conindustrial output. These countries trade and monetary policies. Here siderable
distance: in
Western

eration

Financial Chronicle

Rretton Woods

seem

essen-

it has been easy, to be sure, for mate

TuppoJrS6 term^Hces'
gXaXes of bank deSs

Unift6d St^f 1° 1a"d ,°Ut

X °/- 3 T" '3 ?
T °£
!n'ernat'°"al Payments. We have
had n0 balance of payments strmtexes'hlve becomea maiorfaX Senc'ea ofoarown.Tetconslderi^tL ecXZ tooueh whteh ln§ tbe natural desire of many of
the Federa? Government
our industries for wider foreign

and

and of home morteaves
more

thf

Federal

Further

budeet

can

for Reconstruction

and Develop-

ment was created. And this esti-

ual

and

has been more than con-

SX sfnce^MsX United
CtlX'taS it n'ecetYrv to
States has^found it necessary to
transferrTOrethan
othernationslnthe form of publie grants and loans.a
ln^ld? fr°™

monetary6 syste^'for' the "work? ity** These^turncPorurseCt'on frcise considerable influence to understanding o^the difficulties of public resources took place
There
the British policies of many factors
One of the most
"'hisXgekg^ramXal role of .9^ and have tolerated with under the Marsht»|1
aody
f"^ ^utetantial °rescmrces
were

rnmmitmpntltn

action

thp

ac«.rl

nart

many other

governments
TbirH*

fiu

All of these went along
wrth and helped to underwrite the
basic

understanding that the rules

Of the game

would not be clanged

not stop

People
late
to it.

the

process

were

this

kind

dePends implicit theretofore, and that is,
^ ^
that the Federal Government has

ta^e savings
innovation.

and

investment-and

responsibility
for
assuring
against a serious decline in United
a

States

economic

activity.

icy begins at home, it begins with

of investment,

foreign

that

expanding volume of
trade is critical to their
an

calcu-

ability

and

adjust

measure of economic growth.
Industrial countries like the United

sure

that gov-

achieve

satisfactory

tv/een

the

So, if
a

one

agreement

be-

political parties.
foreign economic pol-

consensus,

exoressed in

law:

governmental policy will be
directed toward maintaining high
levels of employment and

progress

output,

toward, improving

checking "economic deterioration
and setting in motion the forces

the international economic system of economic expansion in Western
could and should also be made Europe. That robust European reby. regional

supported

which trade

our

political

Our policy has also recognized

grnuoings.

the

This tive efforts to

nations

risk

They could be

on^ r^

did

but

prepared
of

that encourage and facili-

public policy is
there is general

through fraudulent ventures
panics,

anicfmQ
amsms

Act

was that

Second, the free nations need
trade and monetary policies that
gain the advantages of international
specialization.
For many

arbitrarily or m any radical way;
Investors
often
lost
everything

speculative

fornJa^lon- Substaiitml resources ment Act of 1946. This
rf
v.oted to 55^
5" merely makes explicit what

Mhlr "J-"3

manv

among

OEEC

remove

its

have

in its effecbarriers to

European

mem-

bers. We helped bring into being

European
Payments Union,
although we recognized that, for a

the

time at least, the EPU would in-

British and Eurooear discrimination against dollar trade,
This was taken to be necessary to
enable the great Western Euro-

volve

achieved by cooperative
action, was essential both for economic health and for the defense
effort that followed,
The Korean War led to a second
phase in the transfer of resources,
United States military assistance,
averaging more than $2.8 billion
a year, has been designed to reinforce collective security, but its
economic effects should not be
ignored. Obviously, the program
covery,

'tr.^^Ofr'C] U-'3;

Volume 184

.'ivsrjw ~A>, rjr.T.

Number 5558.;. The Commercial and
Financial Chronicle

(599)
has

lighted to that ex-1 less developed countries. If these '
As a publid
.corporation';
military burden on our i countries succeed in'
achieving
: powered
to
bor.ruvyAlrpni
addition, their economies' steady measure of
growth, the united

tent- the
allies. In

have benefited from
United

Statesf

range

private

States'ireasury, tiie

investment

has

ac-

spendingf for off-shore procure-' tivities will
certainly expand. In
ment, v operation
of
bases, and* the meantime, it is worth while
other purposes.
!

long

the

to.

Soviet

continues to increase

Union-

work' toward

minimizing

reducing

discriminatory

V defense.

common

should, of

its

military-

and

its

account of changes in mili-f
tary techniques and other condi-)
tions. Even so, military
vestors
spending
will
be
of foreign
a
continuing economic^ oi ioreign

°ur

Part.

still need,

some

help to carry it.

meantime, a third aspect
of capital export has come to the
in

the

drive

of the less

veloped
nations
development.

snouia

the

ease

tax

abroad

burden

the

Con¬

Still, when
IVIIU W
know

W C
we

de¬

all

has

llldt
that the
mc

flow

said,

for

That will

su^ented

than

the .less developed nations. In the
advanced
economies
of
North

America, Western Europe, and the

part of the
problem. The Bank provides a
mechanism for tapping the private
investment market, and today ac-

transitory basis.

The

International
effective answer to

Commonwealth, 500 mil¬

lion people how produce each
year
goods and services worth more
than $700 billion. In the less ad¬
vanced
economies
of
the
free

counts for

world, 1.2 billion people produce

loans to the less

private

about

affiliate,
nance

kind as well as in degree from
the postwar problem in Western
Europe. Then the need was to re¬
store
and
revive
an
advanced
productive system. The European'

the

investment.

developed

Its

Corporation,

will

eign private enterprise.
In addition to loans, the Bank
provides valuable advisory as¬
sistance to borrowers and poten¬
tial borrowers. Its survey missions
have contributed to development

promote

agriculture will limit
industrial progress.
'

rate of

strchr^eco^*

nomic health and
stability, both
for the industrial nations
and tor
the less
developed members of the
tree world.

'"'--ex

***

Vital

Economic

Tasks

These considerations
emphasize

the

importance

lasks

the

economic

lue iree

recognize their

States

has

had
•

involved

and

act

promote them, neither
industrial nor the less devel¬

the

a
-

•

interests

common

wisely
1

-.4

oped

nations

will

able

achieve enduring
prosperity.
The goals which the free

are

America in the period 1945-1955.

did
the

.Much of this has been devoted
to

special purposes like the dis¬
posal of war surplus equipment

provision for refugees and

survivors

cently,

major

lateral

disasters.

part

economic

devoted

na¬

aid

countries

has

recently at

states,

The

all United

and

States economic

| serves

sustained

basis,

Europe need not fall
viet bloc expansion.

outcome will

require,

Western

behind

however,

So¬

probably

degree

joint effort

among the European
nations greater than has
yet been

achieved.
are

The EPU and the OEEC

specific

European
cal.

But

need to

Europe

integration
the

evidence

that

cooperation

political

intra-

practi¬

will ;probably

to closer economic
order

and

other

provide

bases

for

achieving its full potential growth.

rulers

are

counting

Community suggests the feasibil¬
ity of such measures of actual eco¬

the economic growth of

the Soviet Union and other coun¬
tries of the Soviet bloc. We would
be most unwise to
ignore the ma¬

terial results they have achieved.
The
U. S. S. R. has
attained
a

60%

over

only to
compelling the neces¬

Soviet

heavily

Taiwan,

accounted for

productive, man-for-man.
are used
effectively and

these

develop

fiscal years 1955 and
1956, finan¬
cial assistance to South
Korea, the

Indochinese

bloc

existence

their productive power,

been

bearing military burdens

Pakistan

The

vival of the free nations may well
turn on their
ability to

bi¬

beyond their ^own capacities.

exist.

sity for progress toward these
goals. Indeed, the ultimate sur¬

re¬

our

Soviet

make

for

not

Such

sizeable; $7.7 tions must strive for are valid
billion of non-military
aid,^ mainly for their own sake.
They would
grants, to Asia, Africa, and Latin be essential even
if the Soviet bloc

Fi-

provide

govern-

well.

United

sums

areas

than $1 billion. Its

International

latitude for assistance to for¬

new

high per capita.
The problem differs
sharply in

significant portion of

portfolio

total

now

$150 billion each year. In
other words, the output in the
industrial nations is about 10 times

Bank

require

"ef-ac*e
experience involving a
variety of forms of bilateral aid

long time.

not

rlnrtrt/I/vf

nrivate canital and
will f-11
economic) private capital arid skillsjwill tali
short of the mark for a

have to be
Many do not realize the depth
by public or quasi-public financ¬
of the ^economic gulf that
sepa¬
rates the industrial nations from ing and technical assistance on

British

The

of Uiiubl
direct

I1UW

currency loans

been

tnan

there is room for
grants and local

gress will permit.

In the

fore

srnne

will, also like to
on
investors
:>

countries

flexibility

and skills in

^policies ~ its

required

;;"

nations.
guarantees, it is able to assist
The
Tne lesson for tne
analysis
sharply
under¬
mature na¬
direcuy the operations of private
tions is plain
scores,
I hope, : one basic
enough. They cannot
point:
enterprise. In sum, the Bank is
that is, that tne free nations
aiforo io allow narrow
can¬
an important and in
some ways a1
concep¬
not
achieve the requisite well- tions of national
interests to im¬
unique mechanism for deveiopbeing or growth in isolation. They * pede vigorous measures to
ment assistance. A'"'A'i.":i'r;
*v>!
expand
must
work together
to promote their eificiency and
productivity.
;But iike the IBRD, the Export- these
interests. If they cooperate There is no inherent
necessity that
Import Bank is lim ted to loans toennance
the Soviet bloc should
tne
productivity ox
expand its
re<Wa A»
exchange.:'It their economies/'they can help output more rapidly than Western
1S Plai» that such loans alone can- each other to improve the stand¬ Europe. The resources of the West
nol
meet
many
development ards of life and their
are greater and its
peoples."
working force
needs. For the time
being at least, But if they fail to
is more

against*
of the° risks
oneraUm?s We should
operations,
we

hurden and

loans

curity and stability.; So far I have
focused on tne kinds Of

tpe

ment

meas-

Such
forces' such measures, without accepting
be adapted tok them as wise or beneficial for

course,

eniBank

operating unuer annual
appropriations procedures,
bince

ures

take

mucn

'
.

agencies

adopted in some of the less
capability, the free nations must* developed countries against forkeep up their guard by maintain-^ eign investment. It is possible to
ing the requisite forces for*:the'* understand -the fears prompting

*'«

served to

aid

rapid

*° *ess developed countries.

Even
so> our economic assistance has
been designed mainly to foster

and

rate
an

industrial

extremely

capital formation.

growth

high

rate

For three

The success of the Coal and
Steel

nomic
ence

This

built

experi¬

through

upon,

EURATOM and

gradual adoption of a common
market, to get much fuller ad¬
vantage from the great economic
a

assets of Western

dec¬

integration.

can

such measures

That

one

Europe.
for

reason

United

States

economies still had the stored-up planning
in a
number
of
less
ades it has succeeded in
directing
skills and capital of many
r
h i
a
genera-' developed countries. On Occasion, economic growth.
very large share of output to
tiohs. They had an extensive edu¬ staff
members
are : assigned ' to1
.Qne.repept innovation is;the use ^investment and to
^military uses.
cational system,'vast networks of technical'<posts 4n these countries, of our surplus farm commodities

support <for progress to¬
ward European economic
integra¬

Bank's
structure
public utilities, and highly de¬ The
gives
it
veloped mechanisms to induce flexibility for making use of opsavings and convert them into portunities for technical assistance
of this kind.
productive assets.
The United Nations also fills
The less developed nations lack

weeks ago.
A!.-: w.- ■ '
The other task of the developed
nations is the provision of
capital

•

almost all these elements in vary¬

ing

degrees. They must create
of the basic social capital—

most

transport, communications, power,
educational facilities

which

—

largely taken for granted in the
industrialized countries.. They are
grievously lacking in the technical
and

management skills that are
vital to the operation of advanced

industrial

and

agricultural sys¬
their economic
growth will require far-reaching
changes in economic and social
relationships and even in habits of
tems.

Even more,

thought.
are

Finally,

posed within

these problems
a

context of il¬

literacy,

poverty and dense and
growing populations.
Yet the peoples of these nations

part of the need for technical assistance. This year 72 nations have
pledged $28 million to provide the

measurable period of time. This is

major political fact. We can
recognize that economic growth in
a

these countries will be

difficult

slow and

Undoubtedly its

process.

pace
and ^character will depend
mainly on the efforts and choices
of the peoples themselves. Yet thef

free world
stake

under

free

such

whole has
economic

auspices.

industrialized

assist

their

nations

economic

major

progress

And

can

growth

Wisely sharing techniques and

and

cannot

fully meet
developed
countries
for
either capital
or
technical assistance.
Recognizing
this, the United States has engaged in an extensive program
through variousf means. Si n ce
the

programs

needs

the

less
•

World War II, the Export-Import
Bank

has

become

major source
of United States development aid,
More recently, beginning in 19491950, we have carried on national

programs

rial

aid

ated

have
to

re¬

sources.

of technical

and

mate-

from

annually approprithe past two
American farm surpluses

funds.

come

Within

to have

place in aid

development
Let

these

programs abroad,
review briefly the role

national

instruments

foreign private investment* United States aid and investment
could
provide
the
needed
re¬
policy.
sources. the advantages would be
The Export-Import Bank's nrimany. Such investment facilitates
mary function is to
provide fithe

selection of the most produc-- nancing

tive

projects. In addition to pro¬
viding capital, such investment is
also

efficient

means

for

de¬

ports.

American

and

nomic progress.
In these countries, a few fields,
such
as
petroleum, have indeed
attracted substantial private for¬

eign

investment,

•

despite

the

stacles. There has also been
revival

European

medium-term

some

short-

investment

ob¬
and

the

are

now

engaged in

$1 billion of surplus commodities
under the "trade and develop-

economy is about one-third that
the United States; that of the

bloc

services.

its

loans

and

has

also

develop-

materially to furthering the economic growth of the

whole is somewhat

its 22 years of exist-

the Export-Import Bank has
disbursed more than $5 billion in

loans and guarantees of loans.
among the less developed

made

world.

vide

cannot

afford

such

countries

commodities

plosive

countries
well.

credits
Asia

and

Africa

ex-

inflation

.and % to
allow
them to take greater fiscal risks.

The problems of the less devel^oned nations call for a variety of
measures

and

techniques.

These

countries

are

stages

different

well
of

its

capital

eauioment;

seen,

make

and,

maior contribution

foods

consumer

to the

an annual ra+e
growth
of - 3.5%.
Soviet bloc and

exnect,

with

even

decline in their rates of

maintain

growth materially

the' Soviet

pace,

equal

may

nations

the

satellites

some

this

free

tp; maintain

and

have

The
to

economic

Meanwhile,

pansion,

technical skills: for others, it

prog¬

complacent.
Judging by present prospects, the
nations of Western Europe will do

development.
For some, the
critical need ,nn«' is for training

ex¬

rate of
rapid. At

bloc

will

which

and

skills

ards, would still lag well behind

particular

What
that

over

can

developed nations
need

world

certain

as a

from

the

goal

should

be
in

the

+^ev

that

sue-

be-

sq^s noi'cy

The

vm
fhp

cfor*

tv»ot tu<*
and

growth

roeriprks.

must

the resources and effort
required
for growth. But outside
help may
be critical in getting the initial
start

and

maintaining early
in

momentum

fr°p

vif«nv

their

nations

not

only

well-being but to their

to
se¬

the

process of de¬
one should under¬
estimate either the importance or
the difficulty of the task. As I
have already
stressed, it will re¬

velopment. No

quire

imaginative, long-term ef¬

forts by governments and private
investors and institutions alike.
Some

observers

profess to

now

the future of the contest with

see

the USSR

economic
too

being wholly in the
This is certainly

field.

limited

Union

and

view.

still

power.

The

great

advance

Soviet

military

its

interests

influence,

make
means

not

use

it will doubtless
political and other

the full.

But

underestimate

should

the

economic

aspects of the contest.
For

free

a
century and a half the
societies have pioneered in

advancing individual welfare with
freedom. They have succeeded on
a
scale undreamed of until now.
Surely
doubt

tion

they, have
the

outcome

based

cause

competi¬

fulfill

Mager Opens Office

obstacles

and

FLUSHING, N. Y.
Mager is engaging in
business

from

Murray Street.
with Eaton

—

office

Wesley

securities

39-14

formerly

was

Company.

Now Magill, Wareing

are

deeply

pose

and

attitudes.

population

major

Thus, by 1975, India

these

the

Sidney Rubin Opens

for

densely-peopled

need 80% more food than in

inevitable

ing.

alone

problems

areas.

^onomjc health
the

eco¬

much

many

growth

will
rev

The

greater

countries,

sustained

are

•

institutions

new

firmly committed to this goal,

the

These

HOUSTON, Texas —The firm
rooted than in Western
Europe. name of Magill, Wareing & John¬
These new nations face stupen¬ ston, South Coast Life
Building,
has been changed to Magill, Ware¬
dous tasks of
developing skills,
ing & Co. Partners are Albert E.
mobilizing resources and creating
Magill, Jr. and William A. Ware¬

volume

pnnear.

for

growth

speculative.
much

free

assure

Europe.

the less developed

prospects

nomic

industrial

adeou^te

Umro tw

the

resources

effectively rosoonsWe to
c'fio

whole will

«+«adv inflow of

this

those of Western

the "ext decade the Jess

by
few

Europe in total output within two

requirements of
any
country will change as it
passes through various stages.

The

less developed
newer
nations
themselves provide most of

countries.

decades, although its living stand¬

prooer

reaffirmed

n was

ability
forge ahead of Western- human aspirations. ■

conditions,

under

nrocess

regions,

available

against

assure

reserve

clearly

are

material

to shift the balance of power

the

Latin America, but it has

large

rulers

this

ress

its most extensive onerations have

been in

Soviet

counting

less developed nations. For example, these surpluses could pro-

technical

ence,

The

contribute

it makes possible, of
course, an: and
skills
expanded outflow of United States countries,

eco¬

ex-

In performing this function

veloping the necessary technical, goods and services.
It
and managerial skills. And private
contributed to economic
investment also helps to transmit ment
the
qualities of innovation
enterprise so fundamental to

munist China

Since
1954,
the ♦ United emulating the Soviet
system. To¬
States has sold, usually for local -day, the total
output of the Soviet
currencies, or granted, more than
ance.

tion

President Eisenhower only

the* years,

clearly

in the field of development assist-

and Com¬

ment" provisions of the Agricui- than one-half.
XAy- A'
tural Trade Development and AsThese
results
have
been
at¬
services
of .-•/experts
from
the sistance Act of 1954. A large part
tained at dreadful human cost. In
United Nations specialized agen- of the proceeds in turn has been
substance, the Soviet system is a
cies to less developed countries, loaned to the
purchasing nations
highly effective mechanism for
In January, 1,360 United Nations for
financing economic developholding down consumption to very
specialists were spotted around nient projects,
low levels and for directing re¬
the
world.
Over
its
first
five
We are well aware of the need
sources and energies to heavy in¬
years, the program amounted to for caution and restraint in disdustry and to producers' goods.
about $115 million. The United posing of our
surpluses. We have
In these terms, the system oper¬
States has found it a worthwhile
no
wish to disrupt commodity
ates effectively.
But its success
activity, as is indicated by its con¬ markets or to impoverish other
has depended on brutal coercion
tribution, 1951-^1955, of approxi¬ nations.
So far our record
has
and a disregard for human values
mately $65 million.
certainly not been a reckless one.
that is abhorrent to all principles
Important and valuable as they
With ingenuity and skill, surare, these
international agencies plus disposal should be able to of free peoples.

believe and expect that conditions
be materiallv improved in a

can

The'European satellites

need

may

1950;

for resources

WASHINGTON, D. C.
Rubin has opened
M

Street,

ina/MIfIrtp

W. to

Vuicmoco

—

Sidney

offices at 1906
engage

■.'VM;?.

The
28

Commercial and Financial Chronicle

...

Thursday, August 9, 1956

(600)

Continued from first page

rate, it would appear that the chief executive of
the Empire State would like to have his party go to the
voters this autumn with just such ultra-recklessness—and
with Harriman at the head of the ticket, of course.
At any

not

country.

Another Meaning

be, it is quite possible to

But, however all this may

members who

general prosperity and optimism for the future have de¬
veloped. The old "we never had it so good" influence has
been at work.
But—and let this never be forgottenthere has been no real repudiation of the New Deal.
Basically, the "spirit of the New Deal" still prevails in
Washington, and all too often elsewhere throughout the

jng ahead with utmost abandon to more and more radical
departures from tradition and commonsense. At least
this seems to the ordinary mind to be about the essen¬
tial difference between Governor Harriman and Gover¬
nor Stevenson—and General Eisenhower, for that matter.

upon

generally has begun to feel that it has at least a more
approachable group of officials to deal with. A certain
moderation, at least comparative moderation, has char¬
acterized the programs and policies of the Administra¬
tion, and it has been greatly welcomed.
Out of this attitude, or certainly following it, very

We See It

{ As

price to the corporation. The
purchase syndicate was not likely
to
be
large and might contain

opponents, Governor Harriman among them, are doing»
their best to read horrible things in the act.
Business

■

from first

It has more than once appeared as if the
principle had been accepted in the
past or was at the moment regarded generally as sound—
was enough to condemn it as unworthy. "Whatever is, is
wrong" seemed at times to be the motto of a good many
Another characteristic of the New

Deal

was

dicate

group

individual initiative.

principle of self-reliance and
individual, or enough of them,
not satisfied with the outcome

did not like their lot or are
of their

If the general

•paternalistic government and get relief.

tended to become unsatisfactory or if

state of business

there

was or

risk of that happening, or for that matter

merely because it has been unstable in years past, it is a
function of government to stabilize it — that is to make
and keep all of the people prosperous and happy.
And, of

course, one

Deal is that

those who

to be

of the basic tenets of the New
are successful almost certainly

predatory animals to be hedged about
With restrictions to keep them from taking what belongs
or should belong to others.
Merchants of capital are par¬
ticularly suspect, and must be kept in shackles. In brief,
the world is full of "enemies of the people" who must be
dealt with vigorously, and without much if any consid¬
eration. ; At times it has appeared that it was believed
that the way to help the unfortunate, the profligate, and
regarded

the shiftless

was

their

away

;

:It

The
the

the New Deal to

men

minds of

the

easiest

with

this

and

enough
until

the

older

trines upon
the

and

far

which this nation

people half

country.
years,

will

businessmen

the

began

1927.

the

This

trade

but

scope.

became
.

national

Acceleration

•

Small

Buyers'

Interest

widespread interest was
undoubtedly due in part to news¬
paper
stories of the advance in
prices.

There

were,

group so

may

The

participation

mercial

banks

curities

business

of
the

large

creased

opment

another

along,

done

the

success

merly,

ments

originating

the

signed

the

contract

with the corporation

house

purchase

and,

momen¬

risk

tire

burden.

This

already, in most cases,

that

purchase

syndicate

firm

had

this

was

member

immediately

country,, sometimes in a The
originating
quite diffeyjitt from that ih s-tutned rover I the
.

house

divided.

usually

purchase "at

substantial profit over th6 agreed

material omissions. Such
is

the

nature

that account.

The foregoing gives but a brief
view of some of the changes in

among

clause

be held liable

formed a
which it
obliga¬

was

prospectus contain false state¬

provision by the issuer to indem¬
nify the underwriter should they

tarily, at least, it carried the en¬

devel¬

As the market ad¬

where the bankers

guaranteeing

tecting the bankers from liability
should the registration statement

tion

Great Britain.

clause is usually

same

offering of stock to old stock¬
holders or refunding of a bond
issue. Also, there is a clause pro¬

but

and

This

procedure

the members of which the

form

under¬
legislation.
day waiting
upon

that point
between
yesterday and today ceases. For¬
in

but

•

requirements

placed
Federal

underwriting,

ment.

company

embodied in contracts for standby

banking house much as
today

similarity

se¬

of the
invest¬
trust, an old idea in England
now pushed with great vigor
came

investment

ment.

the purchase

that their dealer clientele

vestment

through security

tempo

due

Because

are

affiliates, the growth of the public
utility holding company and last
but
not
least,
perhaps to the
growth of the automobile com¬
panies. As the stock market in^

repudiation of the basic ideas of

are

writers

Corporations prior to 1933, car¬
ried on negotiations with one in¬

com¬

general

so-called

certain

clauses not formerly used.

and liabilities

could be utilized.

how¬

other developments which
have been equally important.

ever,

contain

escape

These

reason.

participating

This

stock

ally

securities

part

V""'.A\Y.,

\
•; v+

Contracts for purchase of secu¬
from the issuer today usu¬

rities

and

of the
20
The greater
distribution period after registration with the
SEC before securities can be of¬
played by the smaller distributor
fered for sale, underwriters guard
required that syndicate managers
possess a larger list of such deal¬ against possibilities of loss arising
ers
with which to work.
There through unexpected economic or
was
much to be gained by in¬ market reversals by reserving the
creasing the number of bankers right to withdraw from the agree¬

the only

not

interest

limited to those
employed in financial

larger

additional5

some

Escape Clauses Not Formerly Used

small dealer be¬
importance as

became

and

SEC rules.

par¬

present

more
frequent.
Because of the
emphasis on speculative securities
risks
were
greater and under¬
writing groups became larger to
share the risk. However, this was

steady

minor

the

dealers

paragraphs in the correspondence
made
necessary
to
accomplish,
meticulous compliance with the
Federal securities legislation and

di¬

greater

issues

new

original

This

The

his

amount

came

few

account

Here

practice.-

mar¬

longer

centers,

re¬

has, in point of fact, invited successful,
join its team—and some of their political

the' matter of initial contact with
the

liability

ticipation.

But the interest of the

residing

of the sort has occurred. Wash¬
ington no longer sneers at business or financial success
in quite the way that was
customary under Roosevelt
Truman.

sale

following

recession

suppose because a Republican Adminis¬
tration under General Eisenhower has become so
popular

and

investors'

the

market

was

doc¬

for

advance

one

that there has been any
the New Deal. Nothing

used

divided

There is no mark-up on the
part of the originating house and
there is no intermediate syndi¬
cate. Those who join the purchase
group are themselves retail dis¬
tributors, but if the issue is large*
and
practically always when
buyers are to be sought among
the general public
rather than,
institutional customers, small
dealers are brought into the pic¬
ture. This procedure and the form
of the dealer contract vary little
from that previously used. Thereare, however, some differences in

syndicate was
the liability of
participant was limited to

each

small buyer in speculative securi¬
ties
accelerated
rapidly as the

educate the rank and file.
Let

considered

much else.

require long

hard experience, and another Adam Smith

five, where quick dis¬
anticipated among a
relatively small number of cus¬
tomers, to 25 or more where the
issue is large and likely to be
widely distributed.

and

liability

tribution

specula¬

great

small

method called at

a new

adopted.

Certainly
the market

1928,

too

were

vided

of the
interested

bonds and preferred stock and not

founded were held by
This "spirit of the New
mores and folkways of the
it

only for the
participation and
expenses of the underwriting. The
number of houses may vary from

tne

first

stock.

buy

ket

was

We sometimes think that

issues

gradually

customers

became

was

century ago.

Deal" has permeated the
very

local

1927

eternal alle¬

profound and realistic

tive

may

small percentage for
this connection, but

amount of their

and

The risks in handling

contractual

those members of

Distribution

issue, and sign the purchase con¬
tract with the issuer accepting

Decreased Liability

Cities

represented by the general public

giance to them. So far has this trend of public thought
and opinion gone that much of it is now taken for
granted.
With many,
particularly some of the younger genera¬
tion, this type of belief is as widely and as firmly held
as

oil,

company

smooth

secu¬

in the earlier pe¬

having completed the inves¬
tigation and contract of purchase
other houses join in committing;
themselves for a proportion of the

This liability ex¬

even

Increased

the

for

nationwide distributor of gasoline

succeeded in

swear

interest

buyers

company

stock

small

once

syndicate who had entirely
disposed of their own participa¬

expanded in both
the public utility field and as a

People Misled

praise of these doctrines and to

Service common stock because

public
instilling such ideas into the
many people that politicians have tound that
way to office was to make the welkin ring

relations

termination

the

tended

buying orders
example, there

considerable

part

greatest tragedy of them all is the fact

that Franklin Roosevelt and his band

services

the

these

For

billed

the distribution and

be allowed

tion.

which

originated.

taxation to make
by the rich. In
short, the "soak-the-rich" philosophy of taxation lies at
the very heart of a great deal of the New Deal structure.
The "ability to pay" maxim of Adam Smith has been
twisted to make a foundation for many, many things that
would have caused that remarkable
gentleman to gasp
and stare.
And so we might proceed at much greater
length, but nothing is to be gained by laboring the point.
The New Deal is anti-business, anti-success, anti-experi¬
ence^ anti-commonsense, and much more.

now

unsold

from

success.

certain that the cost of all this is borne

And

small

the

selling period.

was

was and is a basic principle of
make use of the systeih of progressive

•;

from

originating house usually

manages

handling of bonds

to the

True

riod the

largely

past experience had been
limited

the securities market

demand

securities

rities.

Public

Small dealers might
they are today un¬
of offering

his "best efforts" to sell the

knew no geo¬

soon

buyers around the country was
usually for securities of corpora¬
tions whose products or services
were well known
in the locality

to it that the successful did not

see

get too successful, or even to take

shares which

public

general

1928,

This
mark

for the investment banker to use

in the late twenties accele¬

vance

lacking and confined chiefly with greater price stability.
to the proximity of financial cen¬
First to go was the old unlim¬
ters., True, wealthy individuals, ited liability syndicate, a sort of.
often in consultation with local
temporary partnership called by
bankers
or
by mail with sales lawyers, a joint venture. .Partici¬
representatives of our well known pating houses under this arrange¬
investment houses/purchased both ment were liable not only for
bonds and stocks. These purchases their
agreed upon participation in
were
primarily for investment a new issue, but for the same
and not for speculation.
proportion of any securities left

of others, most likely the wage earners
Successful businessmen most usually are

the farmers.

members.
additional

In present practice, about the
only time an underwriting house
will become the sole signer of a
contract to take over securities*
is when the contract merely calls

was

the oppressors

are
or

Prior

public but subject
paid over at the
end of the selling period.

interest

some

arrangement

them

been

has

alone

least

the price to the
to a concession

graphic limitations.
responsible
Faced with problems of national
changes than anything distribution and an unprecedented
else. Indeed, were it not for the interest in stock on the part of
public recognition of this factor, the public, existing machinery of
it is doubtful if Congress would distribution was too cumbersome
have been sufficiently interested and also
spread liability too thinly
to pass reform legislation at all.
among investment bankers whose
for

be utilized

purchase syndicate

also

were

in price.

securities business has broadened.

This

the

Changing Underwriting Methods

other factors is the fact that the

activities, the thing to do was to come to a

own

done

der

rated, these companies registered
departments.
'
substantial gains. In the so-called
Broadening of the Securities
open-end management type espe¬
Business
cially,
there
was
considerable
Perhaps more apparent than the aggressive merchandising of

its total abandonment of the

which

all

was

page

functions assigned their particular

and is

not

did

departments.

immediately the pur¬
syndicate turned over the
securities to a larger selling syn¬

■Yesterday and Today

Franklin Roosevelt.

of the followers of

who

Almost

Wall Street

fact that some

distribu¬

not

chase

experience.

mere

retail

maintain

Continued

assign a somewhat different meaning to the term "Spirit
of the New Deal." One of the essential attributes of the
Hew Deal is utter disregard if not contempt for historical

were

of securities

tors

underwriting practice. There are
many; others
but most of them
technical in nature and largely
due to

rities

requirements of the Secu¬
Act.-

One

aspect

which is

.Volume 184

Number 5558

expensive, .is the
counsel

must

fact

The Commercial and
Financial Chronicle

...

that

legal

supervise the progress of the of¬

fering at many points in the un¬
derwriting -procedure. Another is
the

requirement

connected

with

that

everyone

security

under¬

writing

may
be called upon to
"due diligence" if he is to

prove

possible
liability if
registration statement and*

escape

necessitates

diligence"

meetings on the part
of the participants : with the
orig¬
inal houses to go over details con¬
tained

these

Looking

discloses

documents.

changes

which

would startle an old timer who
had been away since the twenties..
There

are

more pure

the

reserve

when

Would

that

doing.

the

public

better

served

; 7

Unattractive
At. the
how"

beginning, the

"know-

investment bankers

vestment

chiefly

the

bidding,
and

discouraged

much

this

work

today is handled by cor¬
poration lawyers. There is a gen¬
eral feeling that
competitive bid¬

bination in some houses of a large
commodity business with that of
securities, a development perhaps
brought about by the lean years
of the business depression of the

Spool

mergers

there

were

many

customers

and

cut down overhead costs. It might
be

remarked

twenties

funds
set

are

back

the

made

was

dures

Board

which

banks lend money for margin

may

transactions

behalf

these

streamline
costs.

save

economies

proce¬

Some

forgotten

are

that the business is booming

now

again;

but many have
established practices.

become

and

the
to

Street

find

member

Reserve

that'

the

System, and as
dealing in gov¬

such restricted to

ernment,
issues

state
and
municipal
only.- Wall Street today is

better

able

the

serve

and

speculator

longer

than

may

investor

one

talk
about
the
Wall
wolves leading the lambs
slaughter; Wall Street wel¬

Street
to

the small

comes

protect him and build him into

Debentures To Be

Cooperatives

strike

The

pur¬

T. Knox, fiscal agent of the Banks
for
Cooperatives announced on

investment
trust
is still
with us, but now regulated by the
SEC under the Investment Com¬

Aug. 6.; The proceeds will be used
to
redeem
the
$40
million
of

pany Act and shares may be pur¬
chased through investment houses

maturing Sept. 4, 1956,
lending operations.

for

such

strictly under control.

poses

The

trust

clients, while not unknown in
twenties, practice widely to¬
day. However, their activities are
also

regulated by the SEC under
Investment

the

retail

dated

Sept. 4,
1, 1957, John

due Apr.

consolidated

debentures

and

for

The debentures will be offered
at

The rate of interest will

par.

be announced

about Friday,

Aug. 10.
The

issue

new

through

the

will

office

offered

the

banks'
fiscal agent, 130 William
St., New

York

Advisors' Act.

owner

and

2.95%

the

debentures,

1956

collateral

store

City, with the assistance of
nationwide group of security

were

•*

Competitioxr
later

picked:

the

thirties,

the underwriting
houses discovered real cause for
alarm

tion.

form

new

of competi¬

Corporations began to by¬
the bankers and place* secu¬

pass

rities,. usually debt issues, directly
big institutional investors.
Actually during the postwar years,

with

40 or 50% of debt financing
being privately placed by the
issuers.
Apparently bankers be¬
lieve thoroughly in the old maxim
some

was

-—'if

can't lick 'em, join
'em," because they now play an
important part in a large share
of

direct

placement business.

The

banker is
retained
by the
corporation to discover opportuni¬
ties for direct

negotiates
of

care

Indeed,
for he

further,

the contract and takes

all

well

details and,

compensated

services.

One

placement.

much

goes

of coyrSe,
for
tnese

•

development which would

the old timer to his farm in

send

would

have

twenties.

could

done

Now

must show

back

the

prospectus

that information and

still the banker is in business.

complains, naturally, that the re¬
quirement has reduced his profits.
Be that as it may be, it has not
apparently reduced his business.

And

the

National

Securities

ing

out

Association

conferred

upon

Securities

Exchange Act

Commission

has

SEC
in

char¬

are

Farm

Credit

Farm

The

Credit

debentures

joint

1933.

They
under the supervision of

operate
the

Act

and

Administration.
the

are

several

secured

by
of

turn

the
con¬

ferred

upon these organizations a
virtual police power in regulating

dismay,

practices of their members, setting
up rules of conduct and requiring

the

State
gone

and

municipal issues have
to the highest bidders almost

from the

first

equipment
been

issues

trust

and

railroad

certificates have

offered since

1926. Under

SEC regulation, all issues of pub¬
lic
utilities
which
are
part of

registered

holding

have

tems

been

—

conducting

business

from

bankers

and

information

offices

Herbert

securities
at

curities

from

offices

firm

name

Charles

orders of the Federal Power Com¬

reports,

mission

financial

electric

utilities

covered

under

similar

interstate

the

SEC

not

already

regulations

mandate

Interstate Commerce

gas

and

the

Commission

The
works-

public

together

was

Wood¬

Mr. Woodbury

formerly with

Louis

Mc-

Clure

Co.

with

Stock

offices

8340

Avenue.

Second

was

figures

1955

for

are

based

125,828,310 tons as of Jan. 1, 1955.

annual

capacity

Electric Output Eases

Slightly in Past Week

The amount of electric energy
and

distributed by the electric light

industry for the week ended Saturday, Aug. 4, 1956,
at 11,190,000,000 kwh., according to the
Edison

power

estimated

was

Electric Institute.
This

was

decrease

105,000,000 kwh.

below that

of the

previous week. It increased 265,000,000 kwh. or 2.4% above the
comparable 1955 week and 2,131,000,000 kwh. over the like week
in

1954.

Loadings the Past Week Rose 0.2% Above

Car

Preceding Week Despite the Steel Strike

were

affected by the steel strike then in its fourth week,

1,314

cars

0.2% above those of the preceding week.

They also were 7% above those for the corresponding week
when a steel strike was in its final stages.
7
Loadings for

,♦

in 1952
;

1956, totaled 649,806

the week ended July 28,

corresponding
under corre¬

week,

U. S. Car

Output Dips in Latest Week as Shutdowns
For Model Changeovers Set In

Automotive

output

ended Aug. 3, 1956,

for the latest week

according to "Ward's Automotive Reports," dipped slightly due to
shutdowns for model changeovers.
Last week the industry assembled an estimated 110,168 cars,

recently

business

Northeast

been
&

Miami

local

has

manager

"Ward's."

and

car

output

dropped

22,327 trucks were assembled

reported there were 21,081 trucks made
This compared with 21,426 in the previous

Last week the agency
in

the United

States.

we£k and 22,327 a year ago.

non

week was placed at 7,440 cars and 1,787
In the previous week Dominion plants built 9,169 cars

Canadian output last

for

Co.

below that of the previous
week by 1,079 cars, while truck output declined the past week by
'345 vehicles. In, the corresponding week last year 140,778 cars
week's

Last

McCarthy
his own in¬

conducting

(revised) in the previous week. The past
production total of cars and trucks amounted to 131,243
decrease of 1,424 units below the preceding week's output,

compared with 111,247

Mr.

formerly

trucks.
and

2,161

trucks, and

for the comparable

1955 week, 6,035 cars

and 864 trucks.

To Be Limited Partner
William
eral

steadily
at
the
task -of
building
goodwill
through
its
vigorous public relations oepart-

industry

entire

for the

percentage

states

MIAMI, Fla—Griffin McCarthy
engaging in a securities business

from

annual

itself,

the

16.9% of capacity and 415,000 tons (revised) a week ago. ,
..
The industry's ingot production rate for the weeks in 1956
on annual capacity of 128,363,090 tons as of Jan.
1, 1956.
For the like week a month ago the rate was 12.9% and pro¬
duction 317,000 tons.
A year ago the actual weekly production
was placed at 2,157,000
tons or 89.4%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The

units,

quarterly

Exchange,

that

is based

week's

goodwill

data.

announced

bury & Company.

virtue of the necessity and built

complete

Institute

scheduled at an average of
52.4% of capacity for the week beginning Aug. 6, 1956, equivalent
to 1,290,000 tons of ingot and steel for castings as compared wit!*

under the

Farrell

and

Steel

decrease of 140,620 cars or 17.8% below the
and a decrease of 33,811 cars, or 4.9%
sponding week in 1954.

1528 Barrancas Avenue

com¬

publishing

and

Iron

cars, a

business

SEC most corporations have made

administrative

capacity

64-39

Forms Woodbury Co.

sys¬

American

The

operating rate of steel companies, having 96.1% of the steelmaking

WARRINGTON, Fla. — Charles
F. Woodbury is engaging in a se¬

vestment

and

vast

earnings and progress.

mission.

all

the

7,000,000 tons behind the 1955 pace. Now, pipelines must be
filled. Freight cars must be loaded and sent to the docks before
shipments can resume a high level, concludes this trade magazine.

1955

both

availability
corporation

1955.

than

increased

McCarthy Opens Office

the

stockholder

placed

public

improvement, in

petitive bidding since 1941, unless
specifically exempted by the com¬
Later

welcomed

ahead of

tons

which

186th Lane.

Being re¬
quired to disclose complete details
in registering securities with the

company

offered for

change

7; .v/v,7<7
experience problems with raw materials.
shipments were about 3,200,000 gross
A month later, shipments had dropped more

mills also will

The

banks.

Wiliig

suspicion of irregularities.
A

pre-

obligations

full reports whenever there is any

is
that
of
competitive
bidding for securities. Of course,
practice is not strictly new.

within 10% of

it will

but

Loadings of revenue freight for the week ended July 28, 1956,

1934,

When the strike started, ore

of
They are not Gov¬
ernment obligations and are not
guaranteed by the Government,
the

attempt

consumers

Last year, it was

magazine states.

Exchange

Dealers, Inc. In carry¬
the
regulatory powers
the

The banks

FLUSHING,

out comment upon the power now
and

tered under the provisions of the

NASD

by the Stock

.j.

Wiliig in Flushing

Discussion of 'changes in prac-,
tices could not be complete with¬
exercised

cooperatives.

Power of Stock Exchange

the

customers

read,
he
would just about quit the busi¬
ness.
Presumably, that is what
the banker, also a merchandiser,

you

the

his

The
Banks
for
Cooperatives
make loans to farmers' marketing,
purchasing, and business service

compelled by law to mark
every piece of merchandise with
his cost price in terms that all

Underwriters Face New

As- business

dealers.

1957

take longer for full production to be
mid-October before the industry could
off all the effects of the one-day strike in July, this trade

throw
.

into

10 days to two weeks, the, steel mills

Within

push their operating rate to

levels,

reached.

are

funds

be able

and

1956

rebuild inventories.

will

consolidated

remainder

the

Offered by 13 Banks

7-month

were
heavy. Tonhagewise, the publication said the loss
10,000,000 tons of ingots. Dollarwise, the loss is estimated at
$1,400,000,000 in steel products not sold, in steelworkers wages
and in wages of allied industries:
• "
;
Relatively few metalworking companies suffered from lack
of steel. More companies will feel the pinch before finished steel
products fill the pipeline to consumers.
<
A
Producers expect a high rate of operation will prevail through,

13 Banks for Cooperatives
making arrangements for a
public offering of $50,000,000 of

•

was

valuable customer.

For

weeks

investor, tries to

private
individuals or non-banking cor¬
porations, thus keeping the supply
loanable

fa¬

even

reflected

before.

ever

cetiously

many

and

shocked

ing laws,
Federal

Federal
regulates

passing that the
dealers.
Investment coun¬
other effects and
on the security business.
Profits, selors and fund managers who
if any, were low and every effort advise or even invest for their

depression had

the

Reserve

companies, savings banks
like, and as a result have
relatively small dealer clientele.
Strange, too, would be the com¬

when

loanable

the amount member banks may
loan against securities in
support
of such transactions.
No longer

and the

thirties

in¬

returning

would

least, the old

State bank¬

from

practice

in¬

institutions such

not

was

banking many houses from joining bidding
That last is a change groups and it
practically restricts
brought about by the law. Gone, marketing to the so-called under¬
too, almost entirely is the spe¬ writing firms, the spread being
cialist except in, the field of mu¬ too small to
permit an attractive
nicipals and governments* Most concession to small dealers.
houses are likely to participate in
M a r g i n
requirements which
a variety of
offerings of different were regulated only by the cost

surance

but

must

working

/?,./■:

...

last

timer

page

steel prices necessitated by substantial wage boosts
soon
in prices of consumer goods, the metalpublication said.
The longer contract is expected to
improve productivity, however, which will partially offset wage
increases, declares "Steel."
:
:
The average hourly wage cost of steel industry production
employees will rise 20.T cents, from $2.83 to around $3 between
now and July 1, 1957.
A 16-cent-an-hour increase is expected in
each of the second and third years.
.
■ V-:.;.,
Leading steelmakers figure now that each cent of wage in¬
crease boosts steelmaking costs by 60 cents a ton, including direct
wage costs and the costs Of goods and services purchased.
They
calculate that their first-year costs under the new contract will
rise $12 to $13 a ton, continues this trade weekly.
-7-vV'v
The publication commented that one reason for waiting until
all wage agreements were signed before resuming production was
to,, enabld companies to prepare their new price lists to reflect
the higher costs.
7 v?
.7.
...v
—
:
It said the longer-term contract injects a note of confidence
in future planning by the industry, steelworkers and steel mill
customers that has been lacking with negotiations on an annual
basis. Costs of the strike which interrupted production for five

through his
25% margin payment

Gone are the investment

sell

Higher

subscription

the- famous investment and
pri¬
preparing an issue for vate commercial
banking firm of
banker being employed J. P.
Morgan & Company,, is now
for a fee for. the purpose. Sub¬
a
commercial bank incorporated
sequent rulings which barred such under
the New York

offering,

affiliates.

houses

the

utilized in

ding has served to greatly reduce
houses. All have retail sales de¬ bankers'
profits. The spread be¬
partments.
Security, business Of tween what is paid for the issue
commercial banks is restricted to and
the price
to the public is
governments and municipal bonds. often so small as to.
discourage

some

stockholder receiving subscription
rights to a new issue to finance

And

.■

from

may purchase, securities .on,
what, amounts to an instalment
plan.
It is even possible for a

plan.

Narrowing Spread Proven

Continued

and

broker

wholesale

industries and most of them han¬
dle both stocks and bonds. True,

ment. Small buyers are welcomed
'

right to exempt issues

appears

interest

rulings on equip¬
apDly to other-rail¬

offerings. As in the case of
SEC, the FPC and the ICC

firms

aroundrWall -Street
other

the

called' "due

road

pro¬

spectus should be proved false or
lacking in material information!
This

has extended its

employed -' to* ment'trusts

(601)

Forest

Smith,

gen¬

Business Failures Advanced
And Were

partner in Smith & Gallatin,

Wall

Street,

members

Exchange,
limited

York

New

the New

Aug.

partner. «■

York

City,
Stock

became

Commercial

and

Further in Latest Week

Considerably Above Year Ago
industrial

to 282 in the week
week, reported Dun &

failures rose

Aug. 2 from 274 in the preceding

ended

Continued

on page

The Commercial

(602)

Continued

jrom

and Pacific Coast

page

0 to

The State of Trade and
week of 1939.

■

Failures with liabilities of

$5,000 or more increased to 234
from 225 a week ago and 175 last, year. On the other hand, small
failures with liabilities under $5,000 dipped to 48 from 49 but
remained above their 1955 level of 38.
inabilities m excess of

;

$100,000

incurred by 27 of the week s failures as against 20

were

Manufacturing, wholesaling and

were

construction accounted for

In contrast, retailing failures and com-

lower.

businesses failed than

year

in all industry and trade groups except wholesaling. The most
from 1955 occurred in manufacturing where

ago

noticeable increase

failures

were

Failures

twice

as numerous

last year.

higher in five of

were

the

nine major geographic

regions, including the Pacific, East North Central and the South
Atlantic States. Three areas reported declines during the week,
with a drop occurring in the Middle Atlantic States. The toll in
the Mountain Region held steady at 6. Failures exceeded the 1955
level in seven areas. Dips from a year ago appeared in the New
England and East South Central States.

Wholesale Food Price Index Holds Unchanged at
Previous Week's Level
Unchanged from the preceding week's level, the wholesale
compiled by Dun & Bradstreet, Inc., registered

food price index,

$6.08 on July 31, marking a drop of 2.1% from $6.21 a year ago. It
compared with $7.10 on the corresponding date two years ago, or
a

decline of 14.4%.

Commodities

;

advancing in price during the week included
oats, barley, beef, hams, bellies, lard, steers, hogs and lambs.

corn,

Declines included flour,, wheat,
rye,
seed oil, eggs and potatoes.
The

reported

stores

tne

call

in the

decline

knit dresses attracted

consumer

air

stocks

coolers

interest

consumer

weather in many areas;

and

fans

hurt,

continued

spond quickly.
The

been

cheese; sugar, coffee, cotton¬

index

represents the sum total of the price per pound
of 31 raw foodstuffs and meats in general use and its chief function
is to show the general trend of food
prices at the wholesale level.

Orders were close to those of
Department stores sales

furniture

1955)
the

the Federal Reserve Board's index of the week ended July 28,
1956, decreased 1% below those of the like period last year. In the
preceding week, July 21, 1956; an increase of 2% was reported.
For the four weeks ended July 28, 1956 an increase of 2% was
reported. For the period Jan. 1, 1956 to July 28, 1956, a gain of
4% was registered above that of 1955.
*
• *

sponding date last

and

with 275.31

the

year.

The

investment

some

Winter

wheat

harvest

now

nearing completion
some

and

sections.

cash markets and prices held
up
well despite a
fairly heavy movement of new crop oats. Producer
marketings of corn continued meager and cash corn

prices devel¬
oped considerable strength toward the close of the
period. Active
demand sent rye prices
sharply higher. Growers were
to

putting much of their

and

soybean futures on the
active last week with
daily
5

reported
Trading in grain

into the loan.
Chicago.; Board of Trade

rye

average

was

purchases totaling

bushels, against 61,000,000 last week and 40,100,000 last
Domestic flour bookings were
generally small last

62j800,000
year.

trending moderately lower. Ample supply
positions held by
.most bakers and
jobbers held down the inquiry for most
types,
bhipping directions on most flours continued slow.
Export trade
at

quiet aside

from

some

relatively low prices.'
Raw sugar prices

business with
^ yV

firm despite

were

the

Netherlands

been

improved, more merchan¬
better styling, live models
for wearing apparel, and wider
distribution, at a cost of $4 million

allotments, while
high levels, reflecting

shipments from distributors.

reflecting

p£ces
firm

recorded.

was

gain of 5%

For

the

four

weeks

The

totaled

year

absence of any

ago.

Livestock

markets

generally

impor-

ino-eased

cocoa

bags against 420,722 the previous

receipts
,1o

Warehouse stocks

al* QQ?SKUre'
425,887

bags

and

week and

258,229
firmer. The

were

f rUn appeared t0 be tapering off as receipts for the
peri0,d dr°PPed to the lowest in two years. Cattle
for the week
were

the smallest in four
years.

J1 cotton prices continued
any new

lacked

to work lower

price-making developments.

the

Trading

market

was

quiet

AueTcovPrnm h!ld f? the sidelines Pending publication of the
in
thi ST
C°. in crop estlmate- Purchases of the staple
compared with
compared with 318,100 ?astf.week ™ere reported at 60,500 bales
the previous week

1 nn

T?C Department

and

the

year ago.

try

of Agriculture

announced

mid-July parity

™

The

of 1955

and

deafol

was

slightly ahead

promotions of Summer

C°nSUmer bUyi"g

Vpsurffe in the buying of used passenger cars
%ere- n?,ticeabIy reduced. Total retail trade
of the similar
level

Wednesdavtaofd?^r4VOl,ime °f
Wednesday of last week

last year.

business

nine

"mail

the

Central

America

for

,s^rai

ck-i

plished
First

Ai-

since

all

lon?oon™ orS?

the

rapidly

Chances

are

it^ incorporation.
has
reduced
its

currently.

Second,

it has acquired leases and mineral

ngnts

Which

are

agement

47l,UUU

all

acres,

hold

has

oil and

considered by the man-

much

Oklahoma

which

drill.

from

shal-

ril
cheap

are, very

the

Louisiana

area

where

Olin

new

the going price for
between 16 cents and 20

gas

has

proven

large

reserves,

cents

1,000

per

well-head.

cubic

Olin

has

contract with

year

line

with

sell

its

gas

those

feet at

the

signed a 20major pipe¬
at prices in

and

under

mentioned

trade in the period ended

hoped

this

result,
come

that

contract

com¬

substantial

additional

in-

will be available for further

and

development.

nevertheless

was

made

the

ment sales
(up almost 25% ' in
1955) and in tightening up the real
estate department. New blood for

ness.

The company's cash income

in from outside the

reputable geological reports
and
long-term
purchase
contracts assuring sufficient income
to discharge the indebted-

rently

running

miHi0n
which

annually,

$1,778,000

discovered

and

exploited,, such
j[ncome should* increase materially,
After the

stock of Olin

common

considered

has proved

time

the

stock

has

sold

32 in the Over-the-Counin
ter Market. It4 range in 1955 was
^er Market Ita range in 1955 was
as

I
market, its range in 1955 was
f™m a !°w °f!9^ to.-a high of
32
to

an(j

far this year from 20%

27%.

At
the

aroUnd

the

present
22-23

stock

level.

the

2,755,413 " common
shares
outstanding, approximately 1,755,000
owned
owned

ar(»
are

bv officers and direeby officers and direc¬

By G. LESLIE BARTLETT
(Montgomery Ward)

;

locating and store-planning, and
gradually emphasis will be placed
on

new

stores

stores.
46

states,

its

566

retail

Montgomery

Ward

makes

sales.

New merchandise

re-

two-thirds

its

total

and

new

bished buildings, new lighting are
some

was
1 to 5% higher
than a vear aen
to estimates by Dun &
Bradstreet, Inc Regional esti¬
varied from the
comparable 1955 levels
by the following
percentages: New England and Middle
West +2 to

according

4-6; East, South

over

million in

two

million

years,

it is appre-

ciated that Olin has made tremendous

progress.
The program of
developing new reserves of oil
and gas has continued in 1956 and

the.

successes

not

thus

far

announced,

this

year,

reportedly

have been good.
When arrangements were made
to borrow most of the purchase

price
ance

from
Co.

the

Prudential

was

Insur-

determined

that

spending of $104 million for
inventory, financing a
larger volume of receivables and
increased

the

accomplishments of
the past year. They will continue,
With them has come a decided
lift
in
employee and executive
morale. As first result, sales were
increased in 1955 by 10%.
Continued gains in the rest of
1956 seem well-assured. The 12%
rise in the first five months over
1955, barring shrinkage in general
business, should not be too difficult to sustain tt&e rest of the year,
although comparisons will be with
a period of transition.
This would

improvements cited,
income.
Working

numerous

caused

reduced

capital, however,
time peak.

to an all-

rose

Much of the foregoing is a sum-

toregoing

0f trouble and grief.

mary

exactlv

what

the

That

situation

was

exactly wnai me situation was
and

months ago, but
this is 1956 and the change that
has occurred is great.- Briefiya

year

some

In spite of obstacles and dif-!
ficulties, its sales were up
nearly 10% in 1955. > ;
In spite of heavy expenses,
%tne

barrels

serves

new

the

•

net

tors of the company.

the

that

cut into profits. In 1955, operating income was 7.9% of sales, as
compared with Sears' 10.7%. Also,

pe stock nas sola as

high
j^gh

Ward organ¬

ization.
This reconditioning naturally was costly and temporarily

being applied to annual
reduction and the balance to
exploratory
and
development
operations. As jnew reserves are

that

this department and the storeplanning department was brought

purposes is curin excess of $6

methods of displaying goods, new
arrangement techniques, refurb-

company

longer
know

men

off generously,

In-

deliveries
will

are

basis

above

November, 1956.

which

Business

how good housekeeping often pays

fully repaid out

oil & Gas Corporation was disup new
re-,;tributed> ,initial trading was
5 million barrels of
varound the 12-13 price level. Since

amounts of oil have also been dis-

three qf

Company. While it is true

be-

probably 250 billion cubic

eovered

this

Alaska.

adequate.

proven

over

r wells
low

growing

Progress also is reported in
that the gas reserves in the Mon- - strengthening the retail sales
prciroe
Field are depleting, the loan
motion staff, in increasing install-

promise.

Third, and most important,
serves

coun¬

tnat

now are

stores

warehouses

operations of 4he old

available for all

™

from $32 million

$26,970,300

couId($>e

the loan

Doherty & Co. Edel Blanks, Executive Vice-President; Glen Anderson, Treasurer; and Douglas
Miles, Secretary, are very capable
operating officers from the old
Interstate Company.
V
*

order

the

visability of modern warehouses
replace
multi-storied
leased

Security I Like Best

geology and exploration in South

well located to

are

sections

except

are

encouraging.

Also, a
examination has been
under way to determine the ad¬

terstate

while

mates

order

boundary; there

gas, together with leased acreage,
for the very modest sum of $6.6

in Latest Week
Slightly Lower But
One to Five
Percent Above Similar Week

teritory will not be overlooked.
Fpr the first time, too, Ward cat¬
alog stores crossed our national

of oil and 250 billion cubic feet of

Trade Volume

stimulus

thorough

(Olin Oil' & Gas Corporation)

When

week^with^rpniie0^ ^ade

aona^ef^r Sr"8 reduced-priced safes
slackened romewhat'the pS week.0'

'f.,-;;

the

exploration

generally satisfactory progress the nast
.week, with frequent showers
reported over a wide area of the belt.
v;

all

Southeast.

a
19o6 to July 28,

Continued from page 2

mence

price°o " 35a44 cents.6*1'8 4 P°Und' "P 12 P°l"tS

Juiie

69,400

mail

service

For the period Jaii. I,
1956, the index recorded a rise of 4% above ("hat of the corre¬
sponding period in 1955.

corresponding week

in 1954.

results

reported

aiso

endedj July 28, 1956,

recorded.

was

all in Louisiana. Minor
gas
feet of gas, all in Louisiana Minor

Twerf steady and slightly higher at the close,
London
market

than

According to the Federal Reserved Board's index, department
City for the weekly period ended July 28^ i
1956, registered an increase of 2% above those 'of the like period
last year. In the preceding week, July 21, 19$6, an increase of

lieve

rise in

business in refined
sugar continued active at
heavy seasonal demand for

also, and some
catalog stores will be set

Finally, the catalog itself has

dise,

store sales in New York.

week with

prices

remained

Man¬

"shot in the arm"

here

operates
now
houses'' which

and

Oats met with good demand in

catalog
displays,

handle this business tne company

By TODD ALEXANDER

buying.

harvesting of Spring wheat has already started in

These

various

these

Irregular
movements
continued
to
feature
leading grain
Markets4 the past week. Wheat held within a narrow
trading range
and closed quite firm,
reflecting limited hedging pressure and the
appearance

stores.

Ward's

busi¬

Volume in New York City thefpast week, aided
by comfortable temperatures, rose 10% to 12% Above the level of
like period a year ago, according to tradef observers.

corre¬

Now

the

largely reflecting advances in livestock, rubber, steel scrap and
pig iron. The Daily Wholesale Commodity Price Index, compiled
by Dun & Bradstreet, Inc.4, registered 288.96 on July 31, as com¬
earlier

orcier"

"mail

feature

needed

up.

Retail sales

The general commodity price level worked
higher last week,

week

It's

througn about 300 cat¬
(an increase of 33 in

agement felt

The Past Week

retail

was

taken from

attention.

and attendants take orders.

country-wide basis

had

similarly

and

and catalog departments in

houses

a year ago.

on a

business

too,

the

comes

alog houses

housewares.

and

have

half

ness

Wholesale orders expanded moderately last week, as retailers
prepared for Fall sales promotions.
The most noticeable volume

Wholesale Commodity Price Index Turns Upward

pared with 286.48

than

apparel,

order

business it used to be.

Although purchases of linens, blankets, draperies and floor
coverings fell somewhat, interest moderately exceeded that of the
similar 1955 week.
Attracted by mid-Summer sales promotions
shoppers boosted their buying of living room furniture, dinette
sets and bedding.
- 'r'

Fall

mail

slipping,

longer the simple catalog and mail

reduced, sales in radios and television sets mounted appreciably.

This is basic; it

upbuilding, not rebuilding,
the margin of profit will re¬

had

occurred

$1,084,600,01)0.
highly important point

turning quickly.
and

year ago.

increases

in which

surpassed

\yas

needs

cool

sales were considerably under those of

year

the company had not be¬
anaemic and its vigor is re¬

come

noticeably last

rose

discouraged

was

shade above

to note here: tnough considerably

shirts, Summer suits and lightweight slacks remained at the level
preceding week. Sales in children's back-to-school merchan¬
dise continued to climb with gains in boys' jackets and trousers and
girls' coats and shoes.
1
Dealers'

mark

in 1952 with its

There is

of the

week

sales for 1956

billion

was

Purchases of men's sports

interest.

Thursday, August 9, 1956

$1 billion; the latest

■

While the volume in deep-freeze units and refrigerators was

the rise during the week.
mercial services

for women s
occurring in
sportswear, swimsuits and lightweight cotton dresses. Volume in
Fall clothing expanded moderately, as women's coats, suits and

in the previous week.

...

mean

+1 to +5; Northwest —lto +3 and Southwest

Summer apparel with the most noticeable decreases

Indnsby

Bradstreet, Inc. This increase raised the level considerably above
the 213 in the corresponding week of last year and the 207 in 1954.
Failures were 2% higher than the pre-war toll of 277 in the similar

-f-4%.
Apparel

qgd Financial Chronicle

did

income

1954 rate.

not

fall

under

v.:,4v£

In
spite of heavy: outlays,
working capital reached a new
high.
„

Among

the intangibles-

Morale,

every

bracket,

much improved.

Defeatism

has

is
*

been

replaced

by confidence.

Organization has been greatly
strengthened.
These

are

sound bases for prog-

Vigorous management will
not only recoup lost ground, but
expects to go into new areas and
build more stores.
It will improve its margin of profit, which
is now low, when the extraordinary
expenses
of
reconditioning
the enterprise lie behind it. Obviously, this will not be the work
of a single year; it will take time.
It should be borne in mind that
this challenge to skill and leader-;
ship has now a solid and strong'
foundation. Net worth has nearly
ress.

Volume 184

Number 5558

The Commercial and Financial Chronicle

...

doubled in 10 years.
The price
of the stock is in line
with reality.
In
snort, it offers value rather
than

NAM's Platform for

anticipated romance, and its
is shaping
up rapidly. Al¬
ready,
Ward's
has
topped, per
cent, the 1956 sales gains of Sears.
future

The

price
dividend

reasonable

rewarding.

pany's

President

said

months, ago ".
;
Montgomery Ward

future"

the

few

that

Ward

the New York Stock Ex¬

"confidence*"

Never
more

and

the nation's economy

was

prosperous than it is today
was it less in need of

expenditure

sus-

tain

it,
a
SUUhCSlUdil nw
spokesman for
.

in-

Hnstrv

taken

tivelv

Dem ocratic

Chic ago
Cola G
er

■ •

---x.--

Fontana, Calif., plant from

M
—

said

ers,
cxa,-

mitf.ee.

this
^

war

(Special to The Financial Chronicle)

ULM, Minn.

tained

Robert

—

with State Bond
& Mortgage
Co., 28 North Minne¬
sota Street.

not being
being

Minn

Block has

Minnesota

SecuTui«

TnJin

171.-,.°!

Moody Add

added

staff of Juran &
Moody,
Sixth Street, East.
I

•

Inc., 93

JOPLIN
son' has

tice
UWt

joined*

instead

Christopher
&
Fourth Street

118

Mr.

NAM

committee

V..V

told

"in
"irt

what is known
factor.'

the

Newhard, Cook Adds
(Special to The Financial Chronicle)

the

years

•

made

boldly

Federal

inflation

Government;

belief

iSI A IX/I

interest

assurance to

rate

to
to

the

encourage

Parker^remmded ^jomhowever, that it does not

most

," V V" V not
^e have * * entered a
prosperity can

be so-

-new
"ew,

enrnnraPe

part

•

?o11^ a!wfhfvfn^ l

eJ"a in'

the 'confidence

tended
lenaea

en..*,or &ranJ®d»

ne ®aicl-

ight

nrohiPrn

now

overnignt. uur prooiem now is to

Nation

King Merritt Adds

the decline of government spend-

(Special to The Financial Chronicle)
icle)

ing and tbe absence of the artificial

qpBiNPFTFr n

W., Darby has become

props to

the

economy of war

connected

with

King- Merritt & Company,
Inc., Woodruff Building.

Factors

Creating

"Confidence"

(

con¬

fidence, Mr. Parker said that

Joins

As to what has created this

Conservation
utilization

ijTI n75itini1

flT

(Special to The Financial Chronicle)

whirh

rise
rise

n
"vrr»
SPRINGFIELD, xVio.— inomas factors which cause it to " Rut
liLLdJ, Mo.
faii
for
everv
individual
G. Rose has joined the staff of
amon«
ovpr aU
Hpvpinnmpntc
Moody Investment Co., Woodruff
ransn

orrtxiNur

or
or

XhYaVe YstoS YnfSe hl

Building.

listed

the

points:

With Southern Inv. Co.

Moore has become
r

C—Lewis

affilijtld

! f dII1Uaiea

fac
rue., Johnston BiRMing
jonnston Building.

with

mpany'

(1)
'
V

(Special to The Financial Chronicle)

sidies, monopoly and competition,

con¬

fai>tnr«

^following
:

specific

- r-

riemoflsfrafpd
a uv.u

utuiuiiota

infpntinn

axiwaavavaa

Y, Prnmp"(

the part of th® government to
tn

serve a"People and to elimi-

nate the Promotion of class

con-

Summary of Submitted Planks
„

...

„

raw

ma-

-pAn':'

present and future welfare of

WlC

anu

people
an(j

J.UVU*V

V-AV»*

by encouraging

state

jocaj governments to further

Federal Valley Authorities;
halting,

for

except

en£&ge

pgrlnCfS

the
U1C

Republican
HCHUk/av.au

committee)

which

resolutions
i^w.uv.u..u

T.lovd
Lloyd

national

H.
H.

Duke.
Duke.

summar-

vidual dealer.

•

■

.a_

Monopoly and Competition

naonopoiy ana i/orapeiiuon

i»UBD

piiqi XjiaAO lBqi si 4sn ^31

a free, private competienternrise svstem bv fair and

maintain

lljie enterprise system oy iair ana
effective enforcement of laws de;;cfnpj'
cicrnpd

nrevent

restrajn^ 0f

monoDOly and
monopoly and
trade; by prompt ef-

tectuahon of the Hoover Commis.

recommendations for elimin-

!\^gr|over^ent-owned
J.Drises

business

enterpris

To;

nn<,

Internztv^la^®n
to

here

will
»—

Peaceful

promp/Au
JC

—

ad.

which'
and

■

expenditures unrelated directly to IET S LOOK AT THE BRIGHTER SIDE
defense and their elimination in
of

case

x„

prosperous countries;
of free competitive enox nee
»-,Y>ixra+o

v,,T

Many thousands of Ameri¬
cans

are

invoctmpnt. and

private

activity abroad; opportu_

-11

nity to the free world for

cured of

every year.

rocfriptinns

and

full ex-

brine about

re-

done through the Five-Year Plan vertible currencies; recognition of

and

gradua"
both

cancer

More and

/..I!

a?>35Growing—support Pollt'f
an ,ns^g.ent o£ by the
(2)

reduction

:"Y

taxpaying ownership.

...

orderly

•

private

support

inatory income tax rates which restrictions and bring about a re'mPedeu growth This would be tu™ t° a system of freely con-

which Provides for the

indi¬

"''Y

fciopop jno 'pbj oiSbii oqx

people

are

going to their

doctors in time...To learn
how

head off cancer, call

the American Cancer

•poAtes aq.p|noo Xubui sb ooiait

change of information and views

Duke has
; has;

•••qiBop SS3|pa3U B SI ipB3D jao

de-

Taxation—To give first priority ln fields of economic and cultural
in use of increased Federal reve- experience;
cooperation
with
nues
resulting
from
economic other free nations to reduce and
growth
the discrimS^owtn to moderating tneoiscrim- promptly to eliminate exchange
^
,.

Mr.
Mr.

recently been active

.. ..w..

are

™1irHtn«'t'-K,icinPw

ted Pranks (later to be presented terprise by private investment and
to
lu

Vjy
IUC Federal uuvuuiuvut
by the 1' CUCl dl Government when

sucb iandS' can

tbe
j

—

Form Dufc<S,,McGee

further acquisition of lands

Specifically, the NAM submit- fostering
iostenng
1

n„n^n«#

terials by Private enterprise for* Partners are Albert F. McGee and8
the

the NAM submit''

nffino

sound

assure

Specifically,

n/r.T.

partner.

V with offices at 912 Harris Drive to

—

MTTlMl
America's

attcinpd
taxation, and national labor pol- prosperous world, to be attained
icy. 4 The NAM also presented by: continuance of our program
platform planks on international of foreign aid as long as it contribrelations, conservation, stable pur- utes to our direct interest; prochasing power; government sub- gressive reductions in foreign aid

fidence is "an aosivc quality and
liueuce is
(ill
elu^ve v^uanij
it is difficult to isolate the precise

Moody In v. Co.

CHARLOTTE

highrecommendations
in
the J.1CIUO Gf government tLuuuuy,
llie fieids Ui govciuuicin
economy,

jjgbted

ALLENTOWN, Pa. — Hemphill,
Noyes & Co. has opened ^branch

neces-

dollar.

initiative and activity which it has
engendered, has more than offset

« *

adjust the money supply '
Co.
to the needs of the economy under
COLLEGE, PARK,' Ga.—Duke,
a stable purchasing
power of the McGee &
Co
has been formed

Tb<f confldence which has been

built UP slowly can be Withered

■»

and James G. Murray, Jr.

" ^t^e ™ahagementof'^^^
all
uveue'

and

measures

-1-'

Hemphill, Noyes Branch

money

that state,

—
—

•

the

use

the direct result of
is

the

sary to

confi-

inn

supply by deficit financing v. the
of
supply uy aeuct

men-

and

•fnmilioo

partner
P

avoid

among

Workers
hnsiness
A.111C1 leans
workers, .business develop a program which will enyyuuG-io,
wuo.i.ooo
ST. LOUIS, Mo.—John S. Lion- Americans
Mo.
John
c0
courage
and protect this
tect tnis
conf._
connberger, Jr. is now assomatedLion^ managers, builders, retailers, and dence
with
and
thereby
keep
our
farmers—that .America
will
reNewhard, Cook & Co., Fourth and
moving forward."
main free, with sufficient prosperOhve streets,
T
this end
Mr
parker subjnembers of. the ityand security^ jobs to
New
York
and
Midwest
Stock
jjUBtify mitted to the committee the
Exchanges.
Mr. Lionberger was making long-term plans and com- NAM>S «<piatform for
Prosperity
mitments.
This
growing confiformerly
with
the
St.
formerly
with
St.
Louis
d Progress"_a compilation of
dencej and the release of economic
County National Bank.
platform recommendations
w/r

insure

committee

National policies in recent

have
nave

Pany> members of the New York
Stock Exchange, will be formed

programs; by halting extension of

Mr-

Hpwinnmpnt of
development

-^US- 16, Murray & Com-

county, local and private
responsibility and participation in
ren6Wable^ resource conservatiott

is:to be found in

the

these plans will be broadened and
amplified increasingly as "me

way

said,

Baird

To Form Murray & Co.

in-

reasonably stable purchasing power of the dollar, by:
Maintenance of a balanced budget

bright hope tor the future

economic environment which has taken place,"
he

coer-

violence,

g0^ 01^

answer

designed to eliminate monopolism
designed to eliminate monopons-

Qvr T v-

embarking on these plans, and our

the

G* the chanSe in

vearc

^TT-rm

"T+7"v-Y

resulting from

employers
equally responsible under the laws

oeveiopmems, among

V.UAWWX1V

Importance of "Confidence Factor"
"The

of their Exchange.
parties,

adopt national policies which will

developments,

prosperity

the

Da.

Winfield

of their

prac-

others which could be

"answer

J? c

-Daird & Co. ^„
Partners
~ Aug.

"An environment has been

thatYthe

The company is engaged in
design and developwzigu <mU wvc*vF-

members of the New York Stock

good faith

hold labor unions and
_

A" Can Plan for the Fnture

told

government's

the

Parker

these

can

president

Co.,

director of Piasecki

restcuui,
research,

timidation, threats, boycotts, etc.;

Wp^t

AXIOVV.WVI

that

economiQ^growth?,,

The

J,
with compul-

employers to bargain

cion

dently—not only by business concerns but CtldU by individual workuu b also uy 11IU1 VJLUUai WVAIV-

«cal~li£t

uninn mombershiD

by fully enforced laws, from

de-

—- -v

of the National Can

nrohibitet
SW union membership prohibited and Edwin D Miller will become
by law; recognize the rights and partners in Baird & Company,
responsibilities of employees and 65 Broadway New York City,

•

ereated in which plans for the future

Wiitir.

the staff * of B

d lflUUl Ulgaiu^uuuu,
a labor organization,

trying to do so through taxing and
spending policies.

to the answer to the second."

chronL)

Mo—John

measures

the

Christopher

(Special to the financial

ing.

wbich would protect the freedom
of employees to join or not to join 3

policies

Derit^^ihli PnSptUate sustainable president said. Today's .record
this prm" Drps?dcnth.aMfan''TnriCv,^r?A1H
foster

411

engage

elected

wouid

IvSfiti and to adhere to the terms
and to adhere to the terms
52F*.1agreements; protect both
deficit

climate of the nation."

the first question .points

joins o;

end

onnnnmtr

y?.:

been

other available

been

through orthodox banking

nat^n to^?ach
.le,velof Pros"
artificial stimulants
to the economy? have
creasing?
•
,

Avenue

has

with offices at 40 Wall Street, New
»»»
»- — _T
r'ifxr
Tort
Murrav
who
dependence of the Federal Re-' tic practices contrary to the pub- York City. Ian J. Murray, who
y . Willy hold;^ pifi ^firm s
Exchange
membership, will be a general
To
To rnemt)ership, will be a general

^aivis

PAUL, Minn.—Robert S. C. perity and
rate of
has

^
ana

se^ed d^^MVsi^M3ito/'foYtnat U12*e
buggesuoixs xor

.(Special to The Financial Chronicle)

ST.

.•

adoption

what• is^equired henceforward in the YWay of national

servo System 3nd its power to lie interest. ^ y
"1 -->\i
^
wmn kppi
Kfahip Piirp.hasinff
p {5, economy on an even keel
Stable Purchasing Power
Power

"Just

Petersob

d
Federal

Mr. Parker, who formally i>re^
uie

offices

Aircraft Corp., at the annual meet- i.

(7) The restoration of the in(") The restoration of the in-

rnrnnrafinn

100 First Avenue
Building.

the

the value of the dollar.

expendi¬

government

with

Central

Frank

—

Associates

securities business.

»~- the
.uie

auuaca

°^0V®rnmenJ ^.ve. enfbled the

become

inn

ment of aeronautical products and
,equipment with emphasis on ver-

^enei^

•

(6) The determined, and currently successful, effort to protect

sussus

Poses Two Questions

beiuea

SiV'SSl)

^tidns" to the at—what policies S' Srif dhe0^onSc
iomAiittee:
"Just what

Corp.

cuhon.cle^

(special to the financial

ROCHESTER

that

formed

andgtect employees, employers and the

power

The
,

puaget

or-the aftermath of

war

which Is
which is

ture."

now

With Minn. Sees.

;

rvu

(5)

wuicu

many

orderly fashion

szs-z*

c
financing

and
and

war

and

•

»,>

government

snrv

fact "deserves the most careful
study and analysis" by the comnnttee.
"Today,

the

scope

nufactur-

C. G. Parker
-

cially by

With State Bond & Mtg.

infiltration

Government, and apparently sincere efforts to
bring expansion to
a halt if not
actually to reverse it.

wnicn nas
which li3S not befjn erected arunoeen creaieu srtifi-

NEW

subsi-

Ariz.

Beck

tJ^''1to1P"Y?^.;and
Directors

M P."

parties of the danger which lies
in tbe continual expansion of the

Park

President

for the first time in
1,536,000 tons to 2,213,000 tons many years," Mr^Parker told the
annually and to increase finished committee mmpbers^ "a national
steel
capacity,
particularly tin political" convention is able to
ilarly
political
aoie
iu
plate, steel plate and sheet and write a platform jfor its party in a
structural steel.
situation
of
national prosperity

Erdmann is

North

terminate' non-defense

been

operations (lending operations not

members of
°f the members of both political
both political

Association of

needed

applied to the company's
expansion program, which is designed to increase ingot capacity
at its

Charles

ition by amajority

of the National

financing. ' r
the sale, which

down

the

ideologies.-,

iUfit
Aug. 9.

the

PHOENIX,

vention

The First Boston

F. C. Beck Assoc.

subsidies to defense purposes and
then only with careful safeguards;

agencies by totalitarian isms

National Conlal

through the first quarter of 1958,
will

use

told

as sx

consist
of
$70,000,000 of 4%% first- mortgage
bonds; due 1976 *
and1 $30,000,000 of 5%*
promissory

can*

the

not

American

production and markets will not
"
he disrupted; ; to terminate
:
JJ. LllllS Director
r
promptly and orderly the use of
nonaid n Lillis
nartnpr in thp
of
their
elected
representatives grants-1:o-Md
as
a
method
of
investment banking firm of Bear,
and officials, not only of how such Federal contribution to the states,
otearns o
p
f N
York fitv
a system operates, but of what is
OJOtcin
to liquidate or
UKVO,
UUI
needed for it > to operate effee- responsibility
Chairman of the Board of
—-ownnjresoonsibility
federal
lending
Federal
lending
MM.

Kaiser

from

limit

Subsidies—To

the

legislation,

reduction.

govern¬

should

deprive

people of their constitutional role
in .the enactment of domestic

emer-

was

Steel Corp.
has", placed
$100,000,000 of securities with in- '
stitutional investors," it whs an¬
nounced on Aug. 7.
The issues'

Proceeds

American people for the free economic system and the development of
understanding on the part

Of Securities

notes, due 1981.
Corp. arranged

conventions

used

ab-

aggressively toward further

move

;

......

—

Amefican

the

military

new

—

wholly to subjects in the field of
international relations and that
such

years.

Spending

dies in

never

government

Kaiser Steel Corp.
Places $100,000,060

time,

■'-Ai-

change and the quotation at this
writing is approximately 42 ^.

individual

gency, to hold Federal spending
below the level of fiscal 1956 and

vitally important motivating factor

Submitted plardcs include tax and

of five

sence

perpetuate
same

Federal

spending reduction, severely limited subsidies and other
policies dealing with labor, purchasing power, monopoly,
conservation and competition.

common

and protect the

top rate of 35% by the

ment

brilliant

jResolutions Committee designed to
foster^a healthy rate of growth and, at the

encourage

com¬

believe

has

Democratic

and

end

listing governmental policies enabling non-artificial pros¬
level;; NAM head outlines- recommended platform to

and

income

corporate
taxes to

Prosperity and Progress

perity

Montgomery
listed

and

As the

(603)

Society

w.., r
write to "Cancer" in

care

C l . n'"7'rJ"
of your local Poet Office,

the principle that be restricted American Cancer Society
international
,
conventions should

The Commercial and Financial

Chronicle

.Thursday, August 9, 1956

(604)

'■''

/// ' ///-'/' / /■

// ■V/'

':::.r>""{<•

'/ ■/
'V'-V
/
/■'£;'rr.'-'•"'•'/ .C*&;."./.-a rJV.k';.':;-o / V.•• £*--- ♦'f
>

O...*

■

'i; ;v

it INDICATES
:

in
Able

York, N. Y.

Abundant Uranium, Inc.,

Grand Junction, Colo.

(letter of nptification) 3,000,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium

;

held

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo. •
2
Aero

Supply Mfg. Co., Inc.
(letter of notification) 103,903 shares of common
stock (p^r $1) being offered to stockholders on a basis
of one new share for each 4 1/6 shares held as of July 23;

/V*..

Underwriter—None.

rights to expire Aug. 13. Price—$3 per share, proceeds
—-For relocating machinery and equipment in plant, ad¬
ditional equipment and working capital. Office — 611
West Main St., Corry, Pa. Underwriters — Henry M.
Margolis and Leo A. Strauss, directors of the company.

.."'

Price—To be

1976.

supplied by amendment. Proceeds—To re¬
within one year and for work¬

Lehman

;

American Insurors'

Atlantic Oil Corp., Tulsa, Okla.

...

Feb.

10 filed 400,000 shares of common
Price —$2.50 per share.
Proceeds —To
business.
Office — Birmingham, Ala,

Investors

Corp.,

expand service

vestment Life Insurance Co., to be
Tennessee law.
Underwriter—None.

organized

acquire the

same

common

stock

Treasurer.

■

•

Amphenol Electronics Corp. (8/14)
July 23 filed 120,000 shares of common stock
.

New

(par $1),
of which 20,000 shares are for the account of a
selling
stockholder and 100,000 shares for the
company's account.
Price—To be supplied- by amendment.
Proceeds—To
retire $1,000,000 short term bank
Joans and to reimburse
treasury funds for recent capital expenditures. Under¬
writer—Hornblower & Weeks, New York.

York.

Offering

Not expected

until

the

Arden Farms

Co., Los Angeles, Calif.
subordinated debentures
July 1, 1986 (convertible until July 1, 1964) and
63,614 shares of common stock (par $1). The debentures
are being offered for
subscription by preferred stock¬

•

(par $100).
gram.

ceeds

Muesman of

/-y/

Big Horn Mountain Gold & Uranium Co.
(letter of notification) 9,300,000 shares of

Carroll Bates, President of
•

tain
St.

New York

Boston

Philadelphia
^

Pittsburgh

San Francisco

stock

Private Wires

to all

Mass.

Kalmah

—

Co.,

expenses.:

Inc.,

Office

—.

Liberty Square,

Boston,

*.
j*

company.

all

New

York.

•

Milwaukee, Wis..

'i/.

/" ;.5>\

it Coin, Inc.-, ■>.
July 24 (letter of notification) 253,400 shares of common
stock.
Price^-At par (10 cents per share).
Proceeds—
For mining expenses.
Office—Grove Hotel, Denio, Nev.
Underwriter—N one. U
:
^..: ,v

Colonial Utilities Corp..

June

(letter

amount

June

1966 to

common

held.
common

Price—At market: Proceeds—For

it Civic Finance Corp. of Wisconsin
(letter of notification) $300,000 of 5V2% capital
notes, series A (with stock purchase warrants attached
for 6,000 shares of common stock of $4 par value). Brice
—100% of principal amount for each $100 of notes (with
warrants attached to purchase two shares of common
/stock at $15 per share). Proceeds—For working capital.
Office—633 North Water St., Milwaukee, Wis.
Under¬
writers
Emch and Co., and The Marshall Co., both of

Underwriter—Kimball & Co., New York.

.
■■

(par 10 cents).

mining

offices.

Paul, Minn.

Underwriter

it- Bonanza Oil & Mine Corp., Boston, Mass.
July 30 (letter of notification) 34,140 shares of

Chicago

Cleveland

stockholders.

resort.

July 19

the

& Co. and
Lehman Brothers,
Offering—Temporarily postponed.

—

Laughlin, Inc., Harvey, JJ|, (8/21)
^
July 30 filed 29,500 shares of common stock (par $2.50).
Price—To be supplied by amendment. Proceeds—To cer-

recreation

C. I. T.

Loeb

com¬

Bliss &

Underwriter—None.

Financial.Corp.
May 17 filed $75,000,000 of debentures due Aug. 1, 1971,
/Price—To be supplied by amendment.
Proceeds—Pri¬
marily for furnishing working funds to company's sub¬
sidiaries.
Underwriters—Dillon, Read & Co; Inc., Kuhn,

Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five cents). Price — 10 cents
per
share. Proceeds
For mining expenses. Office — 762
Denver Club Bldg., Denver, Colo. Underwriter—Birkenmayer & Co., Denver. Colo.
;
< ' /
•

operate

Underwriter-r-None, sales to * be made through Albert

stock (par one cent). Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
mineral properties. Office—1424 Pearl Street,
Boulder,
Colo. Underwriter—Lamey & Co., Boulder, Colo.

construct and

Price—$26 per share. Proceeds—For capital and surplus,
including $200,000 to be invested in securities common to
the life insurance industry.
Office—Waxahachie, Tex.

mon

;

—

July 12 filed 20,000 shares of common stock (par $10) to
be offered first and for period of 30 days to stockholders..

Feb. 23

company or by

the insurance firm;

loans and for construction pro¬
Underwriter—Union Securities Corp., New York.

Christian Fidelity Life Insurance Co.

Big Bear Mining, Inc.
July 25 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office—536 Commonwealth
Bldg.,
Denver 2, Colo.
Underwriter—None.

Arizona Public Finance
Co.* Phoenix, Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life
insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For
working capital. Under¬

writer—None, sales to be directly by the

company.

Price—To be supplied by amendment. Pro¬

Office—Upper Marlboro, Md.

$100,000 convertible debenture bonds. Price —At
par.
Proceeds^For. capital expenditures ""ahcl''Working
capital/ Office — Baltimore, Md. Underwriter -- None.

^William H. Burton is President of

(8/17)

Light Co.

Chesapeake Shores Country Club, Inc.
May 29 filed 5,000 shares of common stock, of which it is
the company's intention to pffer for sale at this time
only 2,500 shares. Price—At i>qr ($300 per share). Pro¬

and

d-debentures, 100% Per $100 principal amount; for
stock, $12.50 per share. Proceeds—To repay bank loans.
Underwriter—None. Statement effective July 10.

Illinois

Central

ceeds—To repay * hank

Beta Frozen Food Storage, Inc.
May 14 filed 15,000 shares of preferred stock (par $50)

being offered for
Jiplders at the rate of one share for each 10 shares held
as of July
10; rights to expire on Sept. 25. /Price¬

(Each

of notification)
$109,245.50 principal
convertible subordinate debentures, due

be offered for subscription by holders
at the rate of $1.30 for each share

stock

$100

shares of common
amount.

is convertible into 18
Price—At 100% of principal
-working- capital, construction,

debentures

stock.)

Proceedbs—Far

purchase of Dover plant, etc. Office—90 Broad St., New
York, N. Y. Underwriter—None., ,

It;

;:/•

T-»>.t-J[

—

ibsh

n-M%

2•

July 27 filed 80,000 shares of cumulative preferred stock

tJtah. Underwriter—Thomas Loop Co., New Orleans, La.

principal amount of debentures
held, while the common shares
subscription by common stock-

are

center

in September.

pected early

(letter of notification) 150,000 shares of common
Price—$2 per share. Proceeds—For min¬
ing expenses. ; Office—290 N. University Ave., Provo,

holders at the rate of $10

shopping

tional 300,000 common shares and reoffer them to per**
sons
selected by it at $1.10 per share.
Offering—Ex¬

stock (par $1).

for each, preferred share

(neither of which will be separ¬

sites and a Penn Fruit super¬
of them; the balance will be used
develop shopping centers at the seven sites and to
acquire and develop additional sites for related real
estate activities, and for general corporate purposes.
Underwriter "L-j. Blair & Co.. Incorporated, Philadelphia
and New York. Latter has agreed to purchase an addi¬

June 29

due

•

Bentomite Corp, of America

June 15 filed $4,099,300 of 5%

Philadelphia, Pa.

Corp.,

market adjacent to one

August.

Centers

seven

it Becchetti Copper Corp.
July 25 (letter of notification) 30,000 shares of common
stock.
Price—At par ($10 per share).
Proceeds-r-For
mining expenses. Office — 1902 South Main St., Las
Vegas, Nev. Underwriter—None.

Canadian Husky reserves the

(par one cent) to be offered in units of $50 of debentures

end

Husky Oil; and

ately transferable until Aug. 1, 1958). Price — $50 per
unit. Proceeds—About $4,100,000 will be used to acquire

—

and 10 shares of stock

Technics, S. A., for approximately $500,000, to make a
$200,000 down payment on three S-58 Sikorsky helicop¬
ters to cost a total of $1,025,000, and to retire $175,000
of indebtedness. Underwriter—Blair & Co. Incorporated,

Office—Long
Underwriter—None.

par

July 30 filed $8,000,000 of 5y2% sinking fund debentures
due Aug. 1, 1971, and 1,600,000 shares of common stock

Bahamas Helicopters, Ltd., Nassau, B. W. I.
July 13 filed 300,000 shares of ordinary (common) stock
(par £1 sterling). Price—To be supplied by amendment.
Proceeds — To purchase a 49% stock interest in Aero

(par $2) to

small number of persons who
for investment only." Price—To

City, L. I., N. Y.

stock

May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is President and

be supplied by amendment. Proceeds—To retire demand
notes and for general corporate purposes.

Island

right to declare the exchange effective if less than 90%,
but more than 80%, of such shares are to be so held.

Credit Corp.,

Automation Industries Corp,, Washington,

$50

if,

pany to its affiliates for money borrowed for working
capital. Underwriters—Hallowell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc., both of Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. -of New; York.

★ American Seal-Kap Corp. of Delaware

will

value. The exchange will become effective
result of the exchange offer, Canadian Husky
will hold at least 90% of the shares of each class of

Philadelphia, Pa.
June 11 filed $600,000 of 6% convertible subordinated
debentures due June 15, 1968. Price—100% of principal
amount Proceeds-r-To retire indebtedness of the com¬
Atlas

under '

it American Preferred Life Insurance .Co. V
July 27 (letter of notification) 50,000 shares of common
stock (par $2)/to be represented by preorganization sub¬
scriptions. Price—$6 per share. Proceeds—For forma¬
tion of a life, health and accident insurance company.
Underwriters-rFrank Gabor and Alfred E. Enright, both
of 1524 West Flagler St.,
Miami, Fla.

be offered for sale "to

Husky Oil 6% cumulative redeemable preference share

Nashville, Tenn.

July 13 filed 4,962,500 shares of common stock (par $1),
of which 962,500 share are to be reserved for the exercise
of options by company employees and 4,000,000 shares
are to be offered publicly.
Price—$2 per share. Proceeds
«—To purchase all of the common stock of American In¬

Aug. 7 filed 160,000 shares of

Underwriter —
Odess, Martin & Herzberg, Inc.,. Birmingham, Ala.
American

71,363 shares of 6% cumulative redeemable

preferred stock (par $50) and 1,069,231 shares of common
stock (par $1) to be offered in exchange for the out- /
standing stock of Husky Oil & Refining Ltd. on the f
following basis: One share of Canadian Husky common
for each Husky Oil common share of $1 par value and
one share of Canadian Husky preferred
stock for each

it Atlas Consolidated Tungsten Mines, Inc.
July 16 (letter of notification) 300,000 shares of capital
stock. Price — At par ($1 per share).
Proceeds — For
working capital, etc. Office—312 Byington Bldg., 15 W.
Second St., Reno, Nev. Underwriter—Sterling Securities
Co., Los Angeles, Calif.
"

(par $1).

stock

Ltd., Calgary, Alta., Canada

Canadian Husky Oil

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
Underwriter — To be
named by amendment.
•

Development Co.

Under¬

June 29 filed

/Office—Virginia and Truckee Bldg., Carson City, Nev.
Underwriter—Columbia Securities Co., Inc. of California,

Mines, Ltd., Toronto, Canada

and other general corporate- purposes.
writer—To be named later.

Xday 11

Beverly Hills, Calif.

Shore

capital

Underwriter—Salomon Bros. & Hutzler and
Brothers, both of New York.
«
;
:

ing capital.

Inc.-

Investment Co., LtcL, Honolulu, T. H. V

Burma

duce short-term notes due

(letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds — For organizing and operating a racing stable.

oversubscription privilege);

July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬
ceeds — For equipment, exploration, drilling, working

Ini ^

Aug. 2 filed $50,000,000 of debentures due Aug. 1,

(with

of Aug. 7

Brown

■;

it Associates .Investment; Co.* $outk
n "
(8/23) '

Inc.

July 11 filed 60,075 shares of common stock. Price—To
be supplied by amendment. Proceeds—For investment,
Business—A diversified, open-end investment company
of the management type.
Underwriter—None. '

;

principal amount. Proceeds—To reduce bank, mortgage
loan, or other .indebtedness; and for working capital. ■

June 4

American Horse'Racing Stables,

Inc., Seattle, Wash.

Associated Grocers,

REVISED V

rights to expire on Aug. 21. Price—$10 per share. Pro¬
ceeds—Together with funds to be derived from $40,000,000 long-term loan, and with company funds, to defray
cost of new aircraft, flight equipment and other facilities.
Underwriter—F Eberstadt & Co., New York.

Feb. 23

April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds. Price — Of
/stock. $50 per share; and of notes and bonds, 100% of

ITEMS

July 12 filed 1,105,545 shares of common stock (par $2.50)
being offered for subscription by common stockholders
on
the basis of three new shares fpr each five shares

filed

acquisition of new plants and equipment and for work¬
ing capital. Office—West Haven, Conn. Underwriter—
Reynolds & Co., Inc., New York. V-v'--

Braniff Airways,

•

Armstrong

May

shares of common
share. Proceeds—
For mining expenses. Office—7119 E. Camelback Road,
Scottsdale, Ariz. Underwriter—The Fenner Corp., New

SINCEL: PREVIOUS ISSUE

;

•

Rubber Co. (8/13-17)
$9,250,000 of convertible subordinated
debentures due July, 1971.
Price — 100% of principal
amount. Proceeds—Together with $7,750,000 to be borrowed from insurance companies, for construction or
#

Mining Co.

July 2 (letter of notification) 300,000
stock (par five cents). Price—$1 per

"xi-'.

.ADDITIONS

■ni-

\i:.y

-v.

Volume 184

Number 5558..

Colorado
June

The Commercial and Financial Chronicle

„

"Springs 'Aquatic Center, Inc.

oftSlpO%or multiple thereof).

filed

500,000 shares of common stock (par 10 "
Price—$1 per share. Proceeds—For swimming";

cents).

(605)

Proceeds—For expansion"

None.
pool and related activities, bowling alley, site preparation
including parking, and land cost ($95,000). Underwriters
Consumers Power Co., Jackson, Mich.
—Arthur L. Weir & Co., Colorado Springs, Colo.; and
July 20 filed $40,000,000 of first mortgage
Copley & Co.
/7cC;
a3'//;
1986.

if Colorado Tri-State Wining Corp.
July 27 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price-—At par (10 cents per snare). Pro¬
ceeds—For property, exploratory drilling, drilling (rig,
other equipment and working capital. Office—Colorado
National Bank Bldg., Denver, Colo. Underwriter—None.
Commercial Credit Co.

(8/14)

July 31 filed $50,000,000 of notes due Sept. 1, 1976. Price
—To be supplied by amendment.
Proceeds—To repay
short-term loans and for working capital. Underwriters
-—The First Boston Corp. and Kidder, Peabody & Co.,
both of New York (latter handling books).
Commercial Life Insurance Co. of Missouri

(letter of notification) 50,000 shares of common
offered initially to stockholders (par $2).

June 21
stock

being

Price—$5.50 per share. Proceeds—To be added to gen¬
eral funds and for expansion of business. Office—5579

Springs, Colo:, Underwriter
Denver, Colo.
/

and enlargement"of cBiflpatty's 'business.
Office —.350Pennsylvania Ave. West, Warren, Pa.
Underwriter—

Skyline Securities, Inc.,

—

Crestmont Oil Co.
June

bonds

(letter of notification) 8,000 shares of common
V, stock (par $1). Price—$6.25 per share. Proceeds—To sell-

(8/14)

due

ing stockholders.

Proceeds—For reduction of bank loans and for new
Underwriter—To be determined by com¬

Office

2201

—

West

Burbank, Calif.

p Underwriter—Neary, Purcell & Co., Los Angeles, Calif.

construction.

•

Dalmid Oil &

Uranium, Inc., Grand Junction, Colo.
April 16 (letter of notification) 2,700,000 shares of com- ;
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses. Office—1730 North 7th
Street, Grand Junction, Colo. Underwriter—Columbia
Securities Co., Denver, Colo.•/./•;

petitive

bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; Harriman Ripley & Co. Inc. and The First Bos¬
ton Corp. (jointly); Morgan
Stanley & Co.; White, Weld
& Co. and Shields & Co. (jointly).
Bids—Scheduled to
be received up to 11:30 a.m.
(EDT) on Aug. 14 at office
of Commonwealth Services, Inc., 800 Park Ave.. New
York 22, N. Y,

★ Denison

Mfg, Co.
(letter of notification)

July 24

if Ccnsolidated Natural Gas Co. (8/28)
Aug. 6 filed $30,000,000 of debentures due Sept. 1, 1981.

9,022

shares of

class

common

maximum number of
stock

(par $5) to be
sold to employees pursuant to stock
purchase plan. Price
bank loans and for construction
—At market, as of July 13, 1956
(aggregate to total
program. Underwriter—To be determined by competi¬
$300,000). Office—300 Howard St., Framingham, Mass.
tive bidding.^ Probable bidders:
Halsey,, Stuart & Co.
| Underwriter—None.
/1/:
];£■&&>.■"
Inc.; Morgan Stanley
Co. and the The First Bostori*
Detroit Edison Co. (8/25)
Corp. (jointly); White, Weld & Co. and Paine,; Webber,/
J
Jackson & Curtis (jointly). Bids—To be received up to' -/July 24 filed $59,778,900 of 33A% convertible debentures
due Sept. 14, 1971, to be offered; for
11:30 a.m. (EDT) on Aug. 28 at Room
subscription by
3000, 30 Rocke¬
Proceeds—To

repay

•

Underwriter—Edward D.

Pershing Ave., St. Louis, Mo.

LotiiS, Mo.

Jones & Co., St.

Commonwealth, Inc., Portland, Ore.

March 23 (letter of hotificatioh) 5,912 shares of 6% cu¬
mulative preferred stock being offered for subscription "I

by stockholders of record April 16, 1956 on a pro
basis; rights .to expire on July 2,' 1956. Price*—At par

rata
($50
per share).
Proceeds *— For working capital. OfficeEquitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.
Underwriter—-None.

■

•.

Jf Community Consumer Discount Co* Aug. 6 (letter of notification) $295,000 10-year 5% Sub¬
ordinated Thrift Notfes. Pride—At par (in denominations

feller

Plaza, New York 20, N. Y.

•

stockholders of record Aug.
of

17, 1956 at the rate of $100

debentures for each 21 shares of stock
held; rights to
Continental Equity Securities Corp.
expire on Sept. 14. Price—100% of principal amount.
March 28 filed 40,000 shares of class A common stock
f; Proceeds—To repay short term bank loans and for con¬
(par $5) and 80,000 shares of class B common stock (par
struction and other purposes. Underwriter—None. /
<
50 cents). Price—Of class A stock, $12.50 per share, and
>
• Devall Land & Marine Construction
of class B stock, 50 cents per share.
Co., Inc. "
Proceeds—To in¬
crease capital and surplus.
; (9/10-14)
Office—Alexandria, La. Un¬ : May 16 (letter of notification) 130,000 shares of com¬
derwriter—None.
mon stock (par $1).
Price—$2 per share. Proceeds—For
Crater Lake Mining & Milling Co.f Inc..
payments of notes, to purchase and equip three boata
March 8 (letter of notification) 575,000 shares of common r and
working capital. Office—1111 No. First Ave., Lake
stock. Price—50 cents per share.' Proceeds—For mining
Charles, La. Underwriter—Vickers
.

Office

expenses.

East

1902

—

Brothers, Houston,

San

Rafael,

Colorado

Tex.;

/ - /

//;. v:;/. (

Doctors Oil
Feb.

•

ISSUE

NEW

$9,250,000

(Reynolds & Co., Inc.)

Gold Seal Dairy Products Corp.—.
(All State Securities Dealers, Inc.)
.

.i,?;

•'

(Bids

1 '

i •,

/>/',".*/

New

(Tuesday)'

(Hornblower

120,000

Weeks)

Corp. and Kidder, Peabody

(Bids

Illinois

$40,000,000

EDT)

a.m.

■ ■

(Blyth

and

.
.

<■

(Granbery, Marache

Common

----

Gulf States Utilities Co

89,480 shares

& Co.)

(Wednesday Y

August 15
•

& Co. and Scott,

Lemon

(Johnston.

Horner & Mason, Inc.)

Municipality of

Pennsylvania
K.f5; '
_

77;/,
Inc.!—————Debentures

Mack Trucks
(Offering

stockholders—underwritten by
$19,212,000
•.

common

Central Illinois

Securities Corp.)

(Union

(Bids

■

Mica &

(Bids

Preferred

Morgan

Bonds

(Bids

October
•

(Tuesday)

;

Bonds
$4,000,000

(Kalman

Co..

Inc.i

29,500 shares

Bonds
>

October 2

Minneapolis-Honeywell Regulator Co._-Debentures
P
Pacific
rdLU

•

(Bids

(Bids 8:30 a.m.

(Tuesday)

$30,000,000

POT) $78,000,000

& Co

Barney

110,423

General Acceptance
«Pf»ine

October 16

Common

frame,

Webber,

Corp

& Curtis and
corp.) $20,000,000

Jackson

August 23

•

(Bids

October

Debentures

Union Securities
.

Ohio Power

(Thursday)

(Salomon
.

Bros.

Hutzler and

Metropolitan
-

(Saturday) ;

Invited)

EDT)

a.m.

Edison

Co.-

—

$5S,*?re8,900

(Offering to common

Debentures
no underwriting)

$28,000,000

Bonds

a.m.

EDT)

—

invited)

$1), of

open-end investment company
price of the remaining 40,000
In-

•'

Sun

Life

■

Insurance Co.

per

$1).

share.

Office—Fort

Gas Hills

Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of common stock (par five cents).
Price — 25 cents per share.
Proceeds—For expenses incident to mining operations.

Jan. 4

Bonds

$10,000,000

(Tuesday)

to be Invited) $15,000,000

Fund, Inc.

Underwriter—None.

$6,000,000

Carolina Power & Light Co.——
-(Bids

„

(Tuesday)

Edison Co
(Bids

Mutual

Food Center of Tennessee, Inc.
July 27 (letter of notification) 3,000 shares of 5% cumu¬
lative preferred stock. Price — At par ($100 per share).
Proceeds—For working capital. Office—Memphis, Tenn.

Preferred
11

(Wednesday)

November 27

Detroit
-

$30,000,000

Bonds
11

November

Lehman Brothers)

$50,000,000

August 25

business.

(Tuesday)

Ohio Power Co

.Debentures

Investment Co.

Proceeds—To expand company*®
Lauderdale, Fla. Underwriter—
None.
Offering will be made through James C. Dean,
President of company.
.
^ /
r'/.
?
Price—$10

•

Co
(Bids

•

(Bids

Associates

March 16 filed 32,000 shares of common stock (par

.Bonds
•

Public Service Co. of Indiana, Inc

and R. W. Piesspricn & Co.)

Florida

California Electric Power Co

Electrochemical Co

(Smith

(Tuesday)

(Bids to be invited) $8,000,000

Hooker

dent.

August 227 (Wednesday)

Grand

San
Francisco, Calif. Underwriter—First National Securities
Co., same city, of which Wiley S. Killingsworth is Presi¬

—Debentures

be invited)

October 9

each

shares to net asset value plus a distributing charge.
vestment Adviser—First National Investment Corp.,

$25,000,000 /

Telegraph Co.-—Debentures

Telephone &
-

Corp.)

Securities

(Union

pany will declare itself an
and change the offering

•

JVA1IU

for

.which 10,000 shares are to be offered for sale at $10 per
share to not more than 25 people, whereupon the com-

(Monday)

Columbia Gas System, Inc

Eastern

June 27 filed 50,000 shares of common stock (par

American Telephone & Telegraph Co
Common
^Offering to stockholders—no underwriting). about $575,000,000

Common

Laughlin, Inc.-

-•/;?*'

First National

(Tuesday)

■

Bliss

basis of 4.8216 shares of East¬

(8/15)
July 32 filed 175,000 shares of common stock (par $2.25).
Price—$12.50 per share. . Proceeds—For working capital,
.etc. Office—Lynchburg, Va. - Underwriters — Johnston,
Lemon & Co., Washington, D. C.; and Scott, Horner &
Mason, Inc., Lynchburg, Va.
; .4

$15,000,000

$£0,000,000

one

for each

None.

(Tuesday)

to be invited)

/■' • First Colony Life Insurance Co., Inc.

Bonds

invited)

basis

$100 of debentures held as of about Aug. 9,
(rights to expire on or about Aug. 30). The remain¬
ing 1,000,000 shares are to be sold to Grand Union Co.
Price—$2 per share/ Proceeds—To locate and develop
shopping centers East of the Mississippi. Underwriter—

Virginia Electric & Power Co.—

& CO.) $570,000;

August 21

$2,500,000

CDT)

a.m.

the

(Wednesday)

September 25

America———Common

Minerals Corp. of
(Peter

(Monday)

August 20

„

1956

Telephone Co. of California

September 18

Foster-Mann,

Union share held and

ern

Southern Nevada Power Co._

$8,000,000

(Friday)

Light Co

Preferred

Northern States Power Co

/;/:•'///*/ Dominick & Dominick)

August 17

(Tuesday)

September 12

(Thursday)

August 16

...

.//% v(Bids to be invited) $20,000,000

(N.'R. Real" & CO.) $300,000
/

$3,750,000;

Electric Co

(Bids to <be invited)

General

Hihing & Milling Corp.----Common

United States

Inc.)

Otis,

Blaekstone Valley Gas &

Equip. Trust Ctfs,

;

Common
&

—

July 20 filed 3,140,000 shares of common stock (par $1),
of which 2,140,000 shares are to be offered for subscription by holders of common stock and 3V2% convertible
subordinated debentures, due 1969, of Grand Union Co.

100,000 shares

September 11

Inc.) $33,591,000

<BidrJMO» EDT) $6,873,000

•

--—Common

Invited)

Underwriter

Eastern Shopping Centers, Inc.

Bonds

;

(Gearhart

Metropolitan Toronto—Debentures

(Harriman. Ripley & Co.

Minerals, Inc.

$2,187,500

•

(Bids to

corporate purposes.

None*

$15,000,000

Gulf States Utilities Co

Common

Insurance Co., Inc

general expenses, equipment, insurance and reserve.
Office—710 S. Oregon St., Ontario, Ore.
Underwriter—

n ■

—

iBids to be invited)

First Colony Life

77'7'"7/7:7//V.7'''

$300,000

if Eastern Oregon Natural Gas Co.
''v:/';/
July 16 (letter of notification) 55,600 shares of common
stock.: Price — At par ($5 per share). Proceeds — For

(Monday)

(Vickers Brothers)

Explorations, Ltd.,. /, ^

Inc., New York.

Devall Land & Marine Construction Co., Inc.—Com.

Co., Inc. ) ,120,000 shares

Inc

eral

Common

154,000 common shares

June 4 (regulation "D") 500,000 shares of common stock
(par $1). Price—60 cents per share. Proceeds—For gen¬

Inc. and James N. Toolan & Co.) $600,000

ex¬

Toronto, Canada

$58,053,100

(Wednesday)

September 10

Co.——-——————Common

Warner & Swasey

Common
underwriting)

stockholders—no

one

Underwriter—Columbia Securities

Eastern-Northern

St. Louis-San Francisco Ry
Debens. & Common
/(Exchange offer to preferred stockholders—Union Securities //.
Corp. will be dealer-manager)
$61,600,000 of debentures

Universal Match Corp..;
-~~w~'^ekentures
(A. C. Allyn & Co. Inc. and Scberck, Richter Co.) $6,500,000

Vita Food Products,

Telephone

S. Gerber,

$9,6§O,OO0

Brothers)

{Vickers

for working -capital.

Co., Denver, Colo.

(Friday)

ploration, development and acquisition of properties and

$10,000,000

Industrial Limerock, Inc.-

Corp.i-.^i-^--i—-—Common

Republic■ Cement

EDT)

a.m.

September 5

North Carolina Telephone Co.—————Common
(Offering
to stockholders—underwritten
by R. 5. Dickson &
Co., Inc. and McCarley & Co., Inc.)- 828,572 shares
,

Bell

(Offering

—.—Bonds

(Bids 11:30

$61,301,000'''

.—Bonds

August 31

& Co.) $50,000,000

Consumers Power

underwriting)

;

Co.—--—Notes

Commercial Credit
(The First Boston

shares t

Douglas Corp., Fort Collins, Colo.
:
July 27 filed 4,000,000 shares of common stock (par
cent). Price — 10 cents per share. Proceeds — For

(Wednesday)

stockhoiuers—no

off $13,590.80 liabilities. Underwriter — James a
McKeever & Associates, Oklahoma City, Okla.

7v/1/;7\// pr

Telephone & Telegraph Co.__Comf

England

{Offering

Corp., Carrollton, Tex.
500,000 shares of common stock

pay

Debentures
$30,000,000

Tampa Electric Co

...Common

Amphenol Electronics Corp

EDT)

a.m.

August 29

Class A
,

August

11:30

$1,000,000 1

i;*'!'/■*' V:

<•'

•

Natural Gas

Consolidated

Debentures

Co.——

Armstrong ; Rubber

(Tuesday)' f

August 28

(Monday)

August 13

filed

(par 10
cents)* Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to

CALENDAR
<

Bonds

Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York 6. N. Y.
Continued on pge 34

The Commercial and Financial Chronicle...

(606)

Continued from page
General

Hollander

Acceptance

& Son, Inc.

Knox Corp., Thomson, Ga.
20 filed 150,000 shares of

(N. J.)

June

July 20 (letter of notification) 23,392 shares of common

(8/22)
July 20 filed $20,000,000 of senior debentures due 1971.
Price—To be supplied by amendment.
Proceeds—Ap¬
proximately $16,000,000 will be used to liquidate Secu¬
rities Credit Corp.'s liability for notes receivable dis¬
counted; and for working capital. Underwriters—Paine,
Webber, Jackson & Curtis, Boston and New York; and
Union Securities Corp., New York.
•
«
•

(A.)

Corp.

to be

stock

for

offered

holders of A. Hollander

new

one

subscription by

of Aug. 8, 1956; rights to expire on
Aug. 30.
Price—At par ($12.50 per share). Proceeds
—To purchase certain assets of the Delaware company
and for working capital. Office—Newark, N. J. Under¬
writer—None.

and lumber. Underwriter—Ira

Kropp Forge Co.
June

Hometrust

Akron, O.

stock (par $100) and 134,717 warrants to purchase a like
number of shares of common stock (par $2.50) to be

offered in exchange for common and preferred stock of
A. M. Byers Co. on the basis of one share of General's

preference stock and a warrant to purchase one common
share at $60 per share for each 3% shares Of Byers
stock.

If less than 100,000 shares of Byers com-

ttion stock are

tendered, the exchange ratio will be one
preference share, plus a common stock

common

(General Tire

purchase warrant for each three shares of Byers com¬
mon
stock.
The Byers
preferred stockholders may
exchange each preferred share for either 1.1 shares of
General Tire preference stock and a warrant to pur¬
chase at an initial price of $70, one share of Byers com¬
mon
stock, or one share of General Tire preference
stock and $10 in cash. The offers will expire on Sept. 6.
The General company has also agreed to purchase from
J. F. Byers, Jr., and B. M. Byers a total of 60,000 shares
of Byers common stock for an aggregate price of $1,800,000. If certain conditions are not met, the company
is obligated to purchase the 60,000 shares for an aggre¬

gate of 18,000 shares of General's cumulative preference
stock of a series containing similar terms and pro¬
visions to the company's outstanding $5.50 series A
shares.

^General Tire & Rubber Co., Akron, Ohio

July 27 filed 26,068 shares of $5 cumulative preference
stock (par $100) to be offered in exchange for common
stock and 6% promissory notes of Carlon Products Corp.
The exchange offer will be subject to acceptance by
owners of all of the outstanding $1,060,000 notes and by
;not less than 39,400 of the 68,837 shares of Carlon stock.

stock

General Uranium Corp.

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
Underwriter—None. Maurice Schack, Middletown, N. Y.,
is President.

125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein; Under-

Hooker Electrochemical Co. (8/22)
Aug. 2 filed 110,423 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To a
selling stockholder. Underwriters—Smith, Barney & Co.
and R. W. Pressprich & Co., both of New York.
Idaho-Alta Metals Corp.
March 7 (letter of notification) 120,000 shares of com¬
mon stock (par 10 cents).
Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter
&

Gold

Statement effective March 11.

cents).
and
•:

Seal
filed

Dairy Products Corp. (8/13-17)
200,000 shares of class A stock (par

repay

Y. Underwriter—All States

Securities

Dealers, Inc.,

New York.

Golden

Dawn

Uranium Corp.,

Buena Vista, Colo.
Dec. 27 (letter of notification) 3,000,000 shares of capital
■tock (par five cents). Price—10 cents per share. Pro¬
ceeds

—

For mining expenses.

Underwriter

—

Bel-Air

Securities Co., Provo, Utah.
;

Corp, (formerly Fenner-Streitman

Dec.

(letter of notification) 150,000 shares of capital
(par $1). Price — $2 per share. Proceeds — For
equipment, machinery, inventory, etc. Office—12908 So.
Cerise

Ave., Hawthorne, Calif. Underwriter—Samuel B.
Co., Los Angeles, Calif.

Franklin &

Industrial

Limerock, InO., Miami, Fla. (9/5-6)
July 23 filed 300,000 shares of common stock (par one
cent), together with 75,000 common stock purchase war¬
rants.
Price—$2 per share. Proceeds—For equipment,
working capital and general corporate purposes. Under¬
writers—M.S.

Gerber, Inc. and James M. Toolan & Co.,

both of New York.

Industrial Minerals Development Corp.
March 7 (letter of notification) 1,000,000 shares of com-*
stock; Price—Five cents per share. Proceeds—Fot

it Inland Empire Uranium Corp.
July 3L(letter of notification) 192,000 shares of common
stock (par ten cents). Price—$1.25 per share. Proceeds
—For

equipment,

May 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals and firms who
are
engaged in or closely allied to the growing and
shipping industry. Price—$3 per share. Proceeds—For
working capital, capital expenditures and other corpo¬
rate purposes. Underwriter—None.

acquisitions

Office—1424

purposes.

Colo.

Uranium

North

and

general

corporate
Ave., Colorado
Predecessor—Fre¬

Hancock

Underwriter—None.
Corp. f

Proceeds—For mining expenses. Office—155 West South

Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.
International Plastic Industries Corp.
Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share.
Proceeds—
For advances to Arliss Co., Inc. for purchase of equip¬

N. Y.

Office

—

369-375 DeKalb Ave., Brooklyn ft,

Underwriter—Kamen & Co.. New York.

Investment Life & Trust Co., Mullins, S. C.
July 9 filed 1,800,000 shares of common stock (par $1),
of which 1,200,000 shares are to be offered
publicily
and 600,000 shares on exercise of options.
Price—$2 per
share to public. Proceeds—To be added to general op¬

erating funds to enable the company to maintain proper

Guaranty Income Life Insurance Co.
insurance reserves required by law. Underwriter—None.
Dec. 30 (letter of notification) 24,000 shares of capital
Israel-Mediterranean/Petroleum, inc. (Panama)
stock (par $5) to be offered first to stockholders; then
§
May 29 filed American voting trust certificates for 1,430,policyholders and the public. Price—$10 per share. Pro¬
000 shares of common stock (par one
ceeds—For working capital. Address—P. O. Box
cent), of which
2231,
1,000,000 certificates are to be offered for public sale,
Baton Rouge, La. Underwriter—None.
180,000 shares and certificates therefor are subject to
Gunkelman (R. F.) & Sons, Fargo, N. D.
options and 250,000 shares and certificates therefor are
May 25 (letter of notification) 1,800 shares of 5% cumu¬
to be offered for sale outside of the United States.; Price
lative preferred stock (par $100). Price—$98 per share.
—To be the market price on the American Stock Ex¬
Proceeds

business.

For expenses incident to commercial grain
Underwriter—W. R. Olson Co., Fargo, N. D.

—

change. Proceeds — For carrying out the exploratory
drilling and development of presently licensed acreage,

Feb. 20

operations and expenses of the company, and acquisition,
exploration and development of additional acreage. Un¬

mon

derwriter—H. Kook &

Hard Rock Mining

Co., Pittsburgh, Pa.
(letter of notification) 1,000,000 shares of com¬
stock (par one cent). Price—Five cents
per share.

Proceeds—To

purchase machinery and equipment and
for working capital. -Office — 377 McKee
Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa.

it Haughton Elevator Co., Toledo, Ohio
Aug. 7 filed 160,511 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriter—McDonald & Co., Cleve¬
land, Ohio.
Hidden

Dome

Exploration Co., Inc.
May 15 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents
per share).
Proceeds—
For the development of oil and
219 E. Fremont

gas properties.

Office—

Ave., Las Vegas, Nev. Underwriter—
National Securities Co., Las
Vegas, Nev.
Hiskey Uranium Corp.
May 31 filed 500,000 shares of common stock (par 30
cents). Price—$1 per share. Proceeds—For drilling ex¬
penses, purchase of properties and working capital. Of¬
fices—Las Vegas, Nev., and Salt Lake
City, Utah. Under¬
writer—Ackerson-Hackett Investment Co., Reno, Nev.
Holden Mining Co.,
Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital

stock.

ing

Price—At par ($1 per share). Proceeds—For min¬
Address — P. O. Box 308,

expenses.

Calif.

Underwriter—Arthur B.

Calif.

Winterhaven,
Hogan, Inc., Hollywood,

Leadville Lead & Uranium Corp.
July 17 (letter of notification) 150,000 shares of common
stock (par $1) to be offered to
stockholders; the balance
to go to certain persons in certain jurisdictions to be
decided upon. Price—$2 per share. Proceeds—For ex¬
ploration and development and to purchase additional
stock of its subsidiary, leadville
Explorations, Inc. Office

Co., Inc., New York.

Isthmus

Steamship & Salvage Co., Inc.
May 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share.
Proceeds—For
working capital and for purchase of a ship and equip¬
ment.
Office—1214 Ainsley
Bldg., Miami, Fla. Under¬
writer—Foster-Mann, Inc., New York, N. Y.
it Joa Co.
July 27 (letter of notification) 110,000 shares of common
stock (par 20 cents).
Price—$2.50 per share. Proceeds
—For sales promotions and operating
capital. Office—
411

No.

Scenic

—Anderson

Highway, Lake Wales, Fla. Underwriter
Cook Co., Inc., Palm Beach, Fla.

Jurassic

Minerals, Inc., Cortez, Colo.
(letter of notification) 2,855,000 shares of non¬
assessable Common stock (par one .cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining

Aug. 26

activities.

Colo.

Office

—

Underwriter

326

—

West Montezuma St.,
Cortez,
Bay Securities Corp., New York.

New York.
Kerr Income Fund, Inc., Los
Angeles, Calif.
July 30 filed 100,000 shares of capital stock (par $1), of
which 9,300 shares will be initially sold at $10.98
per

share.

Additional shares will be offered at

to the net asset value

price equal

of the Fund, plus a sales load of
8V2% of such price. Proceeds—For investment. Invest¬
ment Manager — California Fund Investment
Co., of

which John Kerr is also President.

Bldg., Denver, Colo. Underwriter—None.

Lewisohn Copper Corp.
March 30 filed 100,000 shares of common stock
(par .10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold

improvements,

equipment

Office—Tucson.

purposes.

F. Breen, New York.

Lithium
June

and for
Ariz.

general

properties,
corporate

Underwriter—George

Offering—Postponed.

Developments, Inc., Cleveland, Ohio

filed

600,000 shares of
cents), of which 600,000 shares

common

are

stock

(par 10

be sold for

ac¬

count of the company

and 90,000 shares for selling stock¬
holders. Price—$1 per share, by amendment. Proceeds
—For exploration and
development and other general
corporate purposes. Underwriter—George A. Searight,
New York City.

Lone Star
June

F*und, Dallas, Texas

filed

125,000 shares of Balanced Income Series;
125,000 shares of Insurance Growth Series; and 125,000
shares of Industrial Growth Series.
.Price—At market.
Proceeds
For investment. Underwriter
All States
—

—

Management Co., Dallas, Texas. -i
Long Island Lighting Co.
April 5 filed 120;000 shares of cumulative preferred stock,
series G (par $100). Price—To be
supplied by amend¬
ment.

International Basic Metals, Inc.
Jan. 27 (letter of notification) 1,000,000 shares of com¬
mon stock (par 10 cents).
Price — 25 cents per share.

ment, etc.

V; Growers Container Corp., Salinas, Calif.

July 23 (letter of notification) 30,000 shares of common
stock.
Price—At par ($10 per share).
Proceeds—For
mining expenses. Office—604 W. 10th St., P. O. Box *3,
Metropolis, 111. Underwriter—None.
/

mon

Office—Moah, Utah.

Development Enterprises*

Inc.

—308 Colorado

•tock

mont

Price—$5 per share. Proceeds—For expansion
outstanding obligations. Office—Remsen,

Fenner

Ideal-Aerosmith, Inc., Hawthorne, Calif.;

Springs,
•

June

—

Co.), New York.

(par 33V3

★ Lauderdale Mining &
.

writer—None.

Underwriter—I. J. Schenin Co., New York.

(N. J.), New York

filed

Corp., Inc., Montgomery, Ala.

filed

development and working capital.

Underwriter—None.

Jan.

{letter of notification) 18,804 shares of common
cents). Price—At market (estimated at
$3.50 per share). Proceeds — To selling stockholder;
Underwriter—Sincere & Co., Chicago, I1L

General Tire & Rubber Co.,

stock

Business—Prefabricated homes, house trailers
Haupt & Co., New York.

purposes.

July 5 filed 134,717 shares of $5 cumulative preference

common

(par $1). Price—To be supplied by amendment (expect¬
ed at $4 per share). Proceeds—To pay loans from banks
and factors; and for working capital and other
corporate

10 shares of the Delaware

share for each

held

company

class A

stock¬

the basis

common

& Son, Inc> (Del.)

Thursday, August 9,1956

Proceeds—To repay bank loans.

Underwriters—

Blyth & Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed

because of present unsatisfactory market conditions;
Los Angeles Airways,
Inc., Los

Angefes, Calif.

April 23

(letter of notification) 645 shares of common
stock (par $10). Price — $54 per share. Proceeds — To
Clarence M. Belinn, the selling stockholder. Office—5901
West Imperial Highway, Los Angeles
writer—Dean Witter & Co., Los

49, Calif. Under-

Angeles, Calif.

Lost Canyon Uranium & Oil Co.
Oct. 6 (letter of notification) 3,000,000

shares of

assessable capital stock

Price—10 cents

per

share.

(par

Proceeds—For

one

cent).

expenses

incident

non¬

mining

operations. Office — Simms Bldg., Albuquerque, *N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake City, Utah.
I
Lumberman's Investment & Mortgage Co.
May 2 filed 50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and
general corporate purposes.
Office — Denver,: Colo.
Underwriter—None.

it Macimiento Uranium Mining Corp.
July 31 (letter of notification) 1,000,000 shares of com¬
mon stock
(par one cent). Price—20 cents per share.
Proceeds—For current liabilities,
exploration, adminis¬
trative expenses and
working capital. Office — Kimo

Bldg., Albuquerque, N. M.
Denver, Colo.

Underwriter—Carroll & Co.,

Macinar* Inc.
July 23 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents
per share. Proceeds
,

—For general corporate purposes. Business —
Manufac¬
tures steel and aluminum
specialty products.
Under¬
writer—C.

Montague, Inc., 417 Lexington Ave., New

York 17, N. Y.

Mack Trucks, Inc. (8/16)
July 27 filed $19,212,000 of sinking fund subordinated
debentures due Sept. 1, 1968 (with warrants to
purchase
192,120 shares of common stock) to be offered for sub¬
scription by common stockholders of record as of

Aug.

15,

1956, in the ratio of $500 of debentures

stock

held

(with

each

oversubscription privi¬
Aug. 30. Price—To be supplied
by amendment. Proceeds—For working
capital. Under¬
writer—Dominick & Dominick, New York.
lege); rights to expire

Mammoth Milling & Uranium
Co., Inc.
May 11 (letter of, notification) 3,000,000 shares of
capital
stock.
Price—At par (10 cents per
share). Proceeds
For mining expenses.
Office—205 Carlson
Bldg., Pocatello, Idaho. Underwriter—Columbia Securities Co Inc
of California, Beverly
Hills, Calif.
•

Marquardt Aircraft Co., Van Nuys, Calif.

June 25 filed 42,442 shares of
capital stock

(par $1) be¬
subscription by stockholders
of'.record
the basis of one new share for each
five
shares held (with an
oversubscription privilege)- rights
to expire on Aug.
24,
Price
$36 per share Pro¬
ceeds—From sale of stock, together with
funds from
private placement of $2,000,000 of first mortgage

ing

offered

Aug. 3, 1956,

for

—

5y4%

Volume 184

Number 5558

...

The Commercial and Financial
Chronicle

(607)

bonds, for capital improvement, equipment anc^jgeneral

corporate

.principal

holders.

Denver, Colo.

Unsubscribed

Underwriter—None.

purposes.

shares will be bought by Olin Mathiesen Chemical
and Laurence S.
Rockefeller, the two

same

Corp.,

National

stocK-

Mascot Mines, Inc.
July 9 (letter of notfication) 280,000 shares of common
(par 17V2 cents). Price—25 cents per share. Pro¬
payment

Mica & Minerals
Corp. of America
13 filed 570,000 shares of common

share.

per

1, 1956 on a l-for-4 basis.
Proceeds—For vacuum

None.

(par

Underwriter

—

postponed.

Peter

v
^

and for construction

/Midland General Hospital, Inc., Bronx, N. Y.
12 filed 24,120 shares of common stock
(nd par)
and 30,000 shares of $6 dividend
preferred stock (no
par). The'company does not intend presently, to sell
more stock than is required to
raise, at most. $2,700,000.
Price — $100 per share. Proceeds — For
construction;
working capital, reserve, etc. Underwriter—None.

new.

—

Corp., New York:

Mississippi
r.
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stock
(par

May 24 (letter of notification) $300,000 of trust fund cer¬
Price—At par ($2 per unit). Proceeds «— To

provide capital and surplus funds for the activation of
Underwriter—Arizona /Mutual

4 s*

Mohawk Silica Co., Cincinnati, Ohio
23 (letter of notification) 3,000 shares, of 8%
cumulative convertible preferred stock (par $5)0) , land

March

3,000 shares of
.units of
Price

one

common

stock (no par)

Proceeds — For mining expenses
and processing silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio. Underwriter—None.
^

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and
The First Boston Corp. (jointly); Merrill Lynch,
Pierce,
Fenner & Beane, Kidder, Peabody & Co. and White, Weld
Co. (jointly); Equitable-Securities Corp. and Union
Securities Corp. (jointly); Smith, Barney & Co.; Lehman
Brothers and Riter & Co. (jointly); and Glore, Forgan
"& Co. "Bids—Expected to be received
up to 10 am.
(CDT) on Sept. 12 at Room 1100, 231 So. La Salle St.,
-Chicago 4, 111.
*
1

(William)

Co.
'■
notification) $100,000 of 10-year 5%
(subordinated) to beTimited
Ito employees, retail dealers and certain suppliers. Proceeds
For working capital. Office
999 N.r2hd St.,
Philadelphia 23, Pa. Underwriter—None.
3

(letter of

redeemable debenture notes

—

'Mormon Trail Mining Corp., Salt Lake City?:Utal*
(letter of notification) 3,000,000 shares of capital

Feb. 9

NYPA Gas Corp., Buffalo, N. Y.
July 11 (letter of notification) 5,586 shares of

stock

(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223 Phillips 'Petrol-

Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.

stock

eum

Municipality of Metropolitan Toronto
^
■■■;v (Canada)
(8/15)
July 26 filed $33,591,000 of sinking fund debentures ma¬
turing respectively, in 1961, 1966, 1971, 1976 and 1986,
and $2,863,000 of instalment debentures due
1937-1975,
inclusive.

Price—To be supplied by amendment:

ceeds—For

Pro¬

improvements, etc.

Underwriter—Harriman
Ripley & Co. Inc., and six other firms.

^ Naches Telephone Co. f
July 24 (letter of notification) 400 shares of cumulative
6%

preferred stock.

Price — At par ($100 per-share).
discharge indebtedness and for^central
Office—Naches, Yakima County, Wash.
Underwriter—None.
Proceeds

—

office equipment.

National

June

By-Products, Inc.
(letter of notification) 2,000 shares of common
(par $1). Price—$5 per share. Proceedsr—To pay

stock

Federal

estate

taxes.

Office—800

Bankers

Trust

Bldg.,
Des Moines, Iowa. Underwriter—T. C. Henderson &
Co.,
Inc., Des Moines, Iowa.
' kv-;'
National

Consolidated Mining Corp.
;
(letter of notification) 87,000 shares of common
stock (par one cent). Price—$3 per share.
Proceeds—
For mining
expenses. Address — Salida, Colo.-Under¬

May 9

writer—Pummill

Enterprises, Houston, Tex.

—

National Lithium Corp.,
Denver, Colo.
Dec. 27 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club
Bldg.,

share).

per

and
'

for

Proceeds—To
new

re¬

construction.

(no

—100%
term

Price—$8
expenses.

per

Office—606 Root Bldg.,

Buffalo 2, N.

84 W. Chippewa St.,
Y. Underwriter—None.

Oak Mineral & Oil Corp., Farmington, N. M.
Nov. 8 (letter of notification) 2,000,000 shares of common
stock

(par five cents).

Price—15 cents

per

share.

Pro¬

ceeds—For exploration and development and other gen¬
eral corporate purposes. Underwriter—Philip Gordon A

Co., New York.

stock

(par $1) to be offered for subscription by common

stockholders
shares

held

the rate
of

one

new

for

each

six

Aug. 28, 1956.

Price—To be supplied
by amendment. Proceeds — For general corporate pur¬
poses. Underwriters—Morgan Stanley & Co., New York,
and

Reinholdt &

Gardner, St. Louis, Mo.

• Oregon Timber Products Co., Inc.
July 23 (letter ,of notification) 300,000 shares of com/mon stock. Price—At par
($1 per share). Proceeds—For
expenses
of commercial brokerage and retail sale of
lumber and lumber products. Office—Suite 223 Ryland
Bldg., 220 South Virginia St., Reno, Nev. Underwriter—
Ross N. Barengo, Reno, Nev.
Pacific Finance Corp. (Calif. )
April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment.
Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters—Blyth &
Co., Inc., and Hornblower & Weeks. Offering—Indefi¬
nitely postponed.
>
■
u.
•

and

.note

notification) 8,000 shares

class A

accrued

ana

near

^Prudential

interest.
Proceeds—To pay short
buy equipment. Office—1345 Miami

future.

Federal

Uranium Corp.
March 21 (letter of notification)
6.000.000 shares of com*
stock (par two
cents). Price—Five cents per share.
Proceeds—For mining expenses.
mon

Underwriter—Skyline

Securities, Inc., Denver 2, Colo.
:> Puerto

Rican Jai Afai,

July

gage

bonds

filed

$1,100,000

Inc.

4 of

12-year; 6%. first

mort¬

due

July 1, 1968, and 220,000 shares of
stock (par $1). Price—100% of
principal amount
for debentures and
$1.75 per share for the stock. Pro¬
ceeds—For construction of fronton and related
common

activities.

Office—San

Juan, Porto Rico.: Underwriters—Crerie &
iCo., Houston, Texas; and Dixon Bretscher Noonan, Inc..
/Springfield, 111.
■

and

Minerals, Inc., Reno, Nev.

Feb. 14 (letter of
notification) 500,000 shares of common
stock.
Price—At par (10 cents ner
share).
Proceeds—«
For mining expenses.
Office—573 Mill

St, Reno, Nev.
Underwriter—Utility Investments, Inc., Reno, Nev.

^ Radio Control Corp.
July 27 (letter of notitication) 60,000 shares of common
stock (par $1). Price—$5 per share. • Proceeds—For
cost
of sales, technical expense and
working capital. Office
—215 Majestic Bldg., Denver
2, Colo. Underwriter—.
None.

y./

Radium Hill

•

Uranium, Inc., Montrose, Colo.

June 14 (letter of notification) an undetermined number
of shares of common stock which when sold at
the
market will bring in an
aggregate amount of
Proceeds—For

mining

Montrose, Colo.

expenses.

$42,500.
Office—Bryant Bldg.,

Underwriter—Shaiman & Co., Denver,
Z-,

Colo.

* Rand McNally & Co.
July 27 (letter of notification) not to exceed 1,999 shares
of

common

stock

the basis of

Price—$22
common

stock

expected in

^ Ocean Drilling & Exploration Co.,
;
New Orleans, La.
Aug. 8 filed a maximum of 211,238 shares of

(letter

St., Toledo, Ohio;* Underwriter—Baker, Simonds &
Co.;
Detroit, Mich. Offering—Being postponed. Larger deal

|
;
Industries, Inc., St. Petersburg, Fla.

Prestole Corp.
July 3 (letter of notification) $300,000 of 6%
convertible
sinking fund debentures due July 1, 1971 to be issued
in denominations of
$20 or any multiple thereof. Price

common

be offered to present stockholo*
share. Proceeas—For on and gas drilling

par)

Price—

.-!/

ders:

Aug.

($100

(par $l).vPrice—At the market (maxi¬
$6). Proceeds—For working capital.
Office—34th
St. & 22nd
Ave., North, St. Petersburg, Fla. Underwriter
—Eisele & King, Libaire, Stout &
Co., New York.

Underwriter—Morgan

1986. Proceeds—For repayment of bank loans and for
additions and improvements to property. Underwriter—
To be determined by competitive bidding. Probable bid¬

share of preferred and one share of Common.

^ Montgomery

mum

^geles, Cal^^F.

• Northern States Power Co.
(Minn.) (9/12)
July 26 filed $15,000,000 of first mortgage bonds due

to be offered in

$60 per unit.

—

Feb.

common

•

tificates.

six

Exchange.

North Carolina - Telephone Co.
(8/14)
July 24 filed 828,572 sha^s of common stock (par $1) to
be offeretf for; subscription: by common stockholders at
the rate of ftyo shares for each share held; rights toi ex¬
pire Aug: 29f Price—To be supplied by amendment/ Pro¬
ceeds—To acquire physical properties and franchises of
the Norwood and Marshville (N. C.)
exchanges of the
United Telephone Co. of the Carolinas, Inc.; to reduce
short term indebtedness; for construction and moderniza¬
tion program; and for working capital. Underwriters—
R; S. Dickson & Co., Inc., Charlotte, N. C. and
McCarley
& Co., Inc., Asheville, N. C.

$5) to be offered in units of one preferred and four com¬
mon shares.
Price—$40 per unit. Proceeds •—For pur¬
chase of machinery and equipment. Office—New
Albany,
Miss. Underwriter—Lewis & Co., Jackson, Miss., 1

Phoenix, Ariz.

each

Proceeds—For exploration,
drilling and development of
oil and gas
acreage in Israel.
Underwriter—H. Kook 8s
Co., Inc., New York.

North Aftierican Finance Co.,
Phoenix, Ariz.
July 9 filed 300,000 shares of class B non-voting common
stock (par $JL). Price—$3 per share. Proceeds—^To ex¬
pand business operations. Underwriter—None, sales are
to be made-by Eugene M.
Rosenson, President, of Pheonix,jand Mlarchs T. Baumann, Vice-President and Treas¬
urer, of Tucson, Ariz.

Mission Appliance Corp. of -

Benefit Insurance Co.,

Price—At par

Pinellas

Drive-In at Anaheim-Calif.

& Co., Los

Proceeds—To reduce bank loans and for working capital.

company.

for

be offered for sale outside of
the United States.
To be the market
price on the American Stock

Nixon's Inc., Whittier, Calif.
July 16 (letter of notification) 27,000 shares of common
stock (par $10).
Price—$11- per share. Proceeds—For
.equipment for new supermarket, and for construction of

Aug. 1 filed $25,000,000 of 20-year sinking fund deben¬
due 1976. Price—To be supplied by amendment.

insurance

one

—

Kingston, Pa

is President.

tures

this

Pan-Israel Oil Co., Inc.
(Panama)
May 29 filed American voting trust certificates
for 1,430,000 shares of common stock (par one
cent), of which
1,000,000 certificates are to he offered for
public sale,
180,000 shares and certificates therefor are
subject to
options and 25,000 shares and certificates
therefor are to

Aug. 29. American

Nicholson (W. H.) & Co.,
Wilkes-Barre, Pa.
Jan. 16 filed 20,000 shares of common stock
(par $5).
Price—$25 per, share, proceeds — For working
capital
Underwriter—None. A. E. Nicholson Jr. of

(8/21)

•

ratio

^ Package Products Co., Inc.
July 26 (letter of notification) 36,000 shares of
common
stock (par $5).
Price—$8.25 per share. Proceeds—For
equipment, purchase of land for future use and
working
capital. Office
1928 Camden
Road, Charlotte, N. C.
Underwriter—None.

—

for $2,400,000 the Chavin
lead-zinc-copper-silver ; mine
located in South Central Peru, and for general Corporate
purposes. Underwriter — Gearhart & Otis, Inc., New

Modern Pioneers' Life Insurance Co.

the

temporary borrowings
Underwriter—None.

—

Minerals, Inc., New York (9/10)
June. 22 filed - 2,500,000 shares of common stock (par
one cent).
Price—$1.50 per share. Proceeds—To acquire

Underwriter—Union Securities

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3% cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office
345 South
State St., Salt Lake
City, Utah. Underwriter—rBirkenmayer & Co., Denver, Colo.

ing.

—

Jan.

a.m.

Underwriter—None,

for bids has been set.

•':/

8:30

Telephone & Telegraph Co.

pay

Telephone, & Telegraph Co. owns 69.26% (2,122,842
shares) of outstanding stock. Price—At par
($100. per
share). Proceeds
To repay
temporary borrowings.

Minneapolis-Honeywell Regulator Co.

stock which represents its
pro rata portion of the offer¬

New England Telephone & Telegraph Co. (8/29)

share for each five shares held

program.
Underwriter — To be
by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. No new date

York.

(common and/or preferred stock) held. American
Tele¬
phone & Telegraph Co., the
parent, owns 90.70% of the
outstanding common stock and 78.17% of the
preferred
stock, and intends to purchase 1,399,824 shares of the
new

Aug. 3 filed 613,010 shares of capital stock to be offered
for subscription
by stockholders at the rate of one new

determined

holders

received

July 27 filed 1,562,267 shares of common stock to be of¬
subscription by common and preferred stock¬

stock

fered for

'k; National Old Line Insurance Co.'
"
Nov. 15 filed 50,000 shares of class A
common
stock
(par $2) and 50,000 shares of class B common stock,
(par $2). Price—To be supplied by amendment. ^Pro¬
ceeds — To selling stockholders.
Office —Little
Rock,
/Ark. f Underwriter—Equitable .Securities
Corp., Nash¬
ville,Tenn., and New York, N. Y. Offering—Indefinitely

(8/20-24):

Michigan Wisconsin Pipe Line Co.
/
July 2 filed $25,000,000 of first mortgage pipe line bonds
due 1976. Proceeds—To pay off short term bank
loans

Pacific

'-/V -'vi.'

Morgan & Co., New York.

•

Tentatively scheduled
(PDT) on Aug. 21.

metallizing, 1
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W.,
Washington, D. C. Underwriter—

cents). Price—$1 per share. Proceeds—To repayment of
loans, to exercise option to purchase property now under
lease* for construction of "a plant, and for further; explo*
ration, working capital and other general corporate pur¬

Office—Wilmington, Del.

ent

termined

Class

B stockholders of record Feb.

Price—$2

June

poses.

15,1988.' Proceeds—To reduce temporary loans from
par¬
and to repay bank loanSs
Underwriter—To be de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—

(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Class B stock
(par
to be offered for subscription
by Class A and

$1)

properties; repayment of #d-*
vances; exploration and development and
working cap¬
ital. Office—508 Peyton
Bldg., Spokane, Wash. Under¬
writer—Standard Securities Corp., Spokane, Wash,
: '
•

Pacific Telephone &
Telegraph Co. (8/21)
July~27~ filed $78,000,000 of 32-year debentures due
Aug.1

Metallizing Corp.

stock

ceeds—For

Investment Service Co.,

—

March 5

;/>>/■

•

Underwriter

city.

per

(par $10) to be offered to shareholders

one

new

share.

share for each 125 shares held.

Proceeds—For

Office—3255 Central Park Ave.,
—None.

working

capital.

Skokie, 111. Underwriter

^ Rayette, Inc.
July 27 (letter of notification) 41,375 shares of common
stock
(par $2). Price—$7.25 per share. Proceeds—To
reduce existing bank loans and for additional working
capital and expansion. Office—261 E. 5th St., St. Paul,
Minn.
Underwriter—Paine, Webber, Jackson & Curtis,
Minneapolis, Minn.
Reinsurance Investment Corp., Birmingham, Ala«
May 25 filed 2,985,000 shares of common stock, of which
2,485,000 shares are to be offered to public and 500,000
shares are to be reserved on exercise of options to be
granted to employees of company. Price—To public, $2
per share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance com*
pany to be known as the "Reinsurance Company of the
South"; the remainder will be used for other corporate
purposes.

Underwriter—Luna, Matthews & Waites.

Continued

page

The

(608)

Continued from page

>)0r

share.

Proceeds—For

capital and general

York.

Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For mining expenses. Office — 422 Paulsen

(par $1).

stock

Underwriter—

;

Bldg., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,

Co.
notification) 200,000 shares of common
Price—$1.50 per share Proceeds—For

Simon, Inc., Cleveland,

Wash.

it Telecomputing Corp.
Office—323 So. State St., Salt Lake
July 16 (letter of notification). 13,000 shares of capital
City, Utah. Underwriter—Whitney & Co., also of Salt
stock (par $1). Price—At market (estimated at $7.62V2
Lake City, 'v,;.;«,f1 •.v;;;/>.",■'^per share). Proceeds—To go to a security holder. Office
Shangrila Uranium Corp.
—12833 Saticoy St., North Hollywood, Calif. Underwriter
Dec. 30 (letter of notification) 300,000 shares of com¬
—None.^//7:?
mon
stock. Price—At par ($1 per share). Proceeds—

of notification) 300,000 shares of common

June 29 (letter

(par 25 cents). Price—$1 per share. Proceeds—
drilling for oil and gas expenses. Underwriter-

stock

Uranium Corp.

Shoni

For

July 13 (letter of notification) 6,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.

Thomson Kernaghan

mon

Proceeds—For expenses and

working capital. Address—

Riverton, Wyo. Underwriter — Carroll & Co.,
Denver, Colo.
Skiatron Electronics & Television Corp.
March 16 filed 470,000 shares of common stock (par 10

Box 489,

•

<jents). Price
Stockholders.
•

—

Proceeds

At the market.

—

To selling

Underwriter—None.

Southwest American

Houses,

Inc.

20,500 shares of common
At market (estimated at
$2 375 per share). Proceeds—For the account of selling
stockholders. Office — 1200 Givens St., Houston, Tex.
Underwriter—Aetna Securities Corp., New York, N. Y.
July 13 (letters of notification)
«tock (par 10 cents). Price —

public offer planned.

Co., Inc.

incident to development of oil and gas properties.
4>ffice—801 Washington Bldg., Washington, D. C. Under¬

penses

writer—None.
'

Santa Fe, N. M.
(par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general
Southwestern Resources, Inc.,

1,000,000 shares of common stock

8 filed

•corporate purposes. Underwriter—Southwestern
rities Co., Dallas, Texas.
I

Secu¬

Indianapolis, Ind.
July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents and employees of Automobile
Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
Statesman

Insurance Co.,

—To obtain

Automobile

State

the

Insurance

certificate of authority from the Insurance

Commissioner of the State of Indiana to begin business.

Underwriter—None.

Sterling Precision Corp., New York
July 9 filed 379,974 shares of 5% cumulative convertible
^preferred stock, series C, to be offered for subscription
by hplders of outstanding common stock and series A
and series B preferred stock in the ratio of one share
-of new preferred stock for each four shares of series A
or series B preferred stock and one share of new pre¬
ferred for each 10 shares of common stock held. Price—
At par ($10 per share). Proceeds—To repay a $1,400,000
note held by Equity General Corp., a subsidiary of

Equity Corp.; to liquidate existing bank loans and for
general corporate purposes.
Underwriter—None, but
Equity General Corp. has agreed to purchase at par,
•plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares (3.23%) of Sterling com¬
mon
f

(J. P.)

& Co., Ltd., Toronto 1, Ont., Canada.

it Tri-Boro Finance Co., Inc. of Attleboro
Aug. 2 (letter of notification) 11,500 shares of 7% pre¬
per

share).

Proceeds

outstanding notes payable and operating capiOffice—98 Park St., Attleboro, Mass. Underwriter

tol.

—None.

Inc., Topeka, Kansas
(letter of notification) 599,600 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—204 Central Bldg.,
U-Kan Minerals,

June 19

Topeka, Kan.. Underwriter—E. R, Bell Co., Kansas City,
Mo.

Union Chemical & Materials Corp.

May 25 filed 200,000 shares of common stock (par $10).
Price—To be supplied
by amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. tUnderwriters
—Allen & Co., Bache & Co. and Reynolds ^&>Col, Inc.,
Offering—Postponed indefinitely.,.

•all of New York.

Union of Texas Oil

Co.* Houston, Texas

(8/15)

(letter of notification) 300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For exploration and drilling costs and for working
capital. Underwriter—N. R. Real & Co., Jersey City, N. J.
16

Universal Fuel & Chemical Corp.
May 17 (letter of notification) 300,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard. Inc.,Pittsburgh, TPa.
Universal

—

Investors,

per

share.

wholly-owned legal
der

Inc., Shreveport, La.

•

first

Louisiana

Proceeds

reserve

laws.

—

To organize

life insurance

Underwriter—Frank

new

company un¬

Keith

Co.,

Universal

Match

filed

Corp.

$6,500,000

(8/14-15)

convertible

subordinated

Universal-Rundle

Corp., New Castle, Pa.
July 27 filed 50,000 shares of common stock (par $10).
Price—$18.50 per share. Proceeds—To Sears, Roebuck
& Co., the selling stockholder.
Underwriter—None.

• Uranium Corp. of America
July 17 (letter of notification) 2,500,000 shares of
mon

Developers, Inc., Spokane, Wash.

Spokane, Wash.

•

bidding.

Probable

bidders:

Coltharp Investment

Halsey,

Stuart

Co.

—

Food

Products,

1101

Failing

Inc., New York

certain

selling stockholders.
bery, Marache & Co., New York.

($1 per share). Proceeds —For
Office—Continental Bank Bldg., Salt

Inc.; Stone & Webster Securities Corp.; Goldman, Sachs

Office

Uranium Corp.

(letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share). Proceed*
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire SecuritiesCorp., Salt Lake City, Utah.
it Whittaker (Wm. R.) , Co., Ltd.
July 26 (letter of notification) 13,000 shares of common
stock (par $1) to be offered to employees.
Price—$15>
per share.
Proceeds—For working capital. Office—915N. Citrus Ave., Los Anseles. iCalif. Underwriter—NoneStatement* was withdrawn on July 30.

Cincinnati, Ohio

(letter of notification) 20,666 shares of class B
stock (par $1) to be offered for subscription by

common

class B common stockholders on a l-for-7 basii;.
per share.
Proceeds—For working
—3500 Maison Road, Cincinnati, Ohio.

$6.84

Price—

capital. Office
Underwriter—

Wilmington Country Club, Inc., Wilmington, Del*
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures).
Proceed*
—For construction of a golf house and other improve¬
Underwriter—None.

ments.

Wisconsin Wood Products, Inc.
>
June 25 filed 74,016 shares of common sjtock (par $5>
to be offered initially for sale to the present stock¬
It is not expected that more than 42,500 shares

sold

immediately. Price—$10 per share. Pro¬
of plant and purchase of equipment*
Office—Phillips, Wis. Underwriter—None.
% /
be

lease

Wyoming Oil & Gas Co.
July 9 (letter of notification) 200,000 shares of common
stock.
Price—At par (25 cents per share).
Proceeds—
For development of oil and gas properties.
Office—1529
South Forest St., Denver, Colo.
Underwriter—Wayne
Jewell Co., Denver, Colo.
Sheet & Tube Co.
shares of common stock (no par)being
exchange for common stock of Emsco Man¬

Youngstown

June 5 filed 22,977

offered

the basis of one share of Youngstown
of Emsco; offer will expire on
Aug. 8.
Youngstown presently owns 388,853 shares,
representing 84.94% of the 457,786 outstanding shares ol

ufacturing Co.
for

each

Emsco

three

common

stock.

Statement effective June 25.

Bldg.,

Vita

—To

par

(8/29)
Aug. 1 filed $10,000,000 of first mortgage bonds due 1986.
Proceeds—To repay bank loans and for construction
program.
Underwriter—To be determined at competi¬
tive

White Sage
Feb. 13

Underwriter—Orval Walker Sorenson,

Prospective Offerings
it Acme Steel Co.
July 31 it was announced stockholders on Sept. 12 will
vote
on
approving an amendment to the company's
charter whereby the stockholders will waive their pre¬
emptive rights to a pro rata share of an issue of 400,000
additional shares of

common
stock (par $10). Proceeds
expansion program. Underwriters —• Probably
Blyth & Co., Inc. and Merrill Lynch, Pierce, Fenner
& Beane, both of New York.

—

(8/14)

July 20 filed 89,480 shares of common stock (par 25
cents), of which 69,480 shares are to be offered to public
and 20,000 shares to 27 selected executives and
key em¬
ployees.. Price—To be supplied by amendment. Proceeds

common

it Tampa Electric Co.

expenses.

4, Ore.

com¬

Industries, Inc., Evanston, III.
(letter of notification) 7,000 shares of common
stock (par one cent).
Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co..
Inc., Chicago, 111.

writer—None.

•,

Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn.
Offering — Temporarily postponed. Not
expected until sometime in September or October.

Proceeds

Vance

Jan.

Co., Philadelphia, Pa.
April 18 filed 229,300 shares of common stock. Price—At
tbe market. 0Proceeds—To selling stockholders. Under¬

—

B 5%

and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &

first mortgage bonds,

Portland, Ore.

Oil

mining expenses.
Lake City, Utah.
Underwriter
Inc., Salt Lake City, Utah.

Price—At par (10 cents per share).

mining

Portland

2,160 shares of common stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
-Proceeds—For improvements and working capital.
Of¬
fice—909 West Sprague Ave., Spokane, Wash.
Under¬

Sweet Corp. (Utah)
May 7 (letter of notification) 300,000 shares of

stock.

—For

Feb. 2 (letter of notification) 920 shares of 6% cumula¬
tive non-voting preferred stock
($100 per share) and

be used to retire outstanding series A and series

holders.

Inc., Shreveport, La.

preferred stock of
Underwriter—Goldman, Sachs & Co., New

Price —At

$1,500,000 4%% first mortgage bonds and $900,000 of
3-year unsecured 4%% notes to a group of banks, will

ceeds—For

Offering—Temporarily deferred.

stock.

company's account and 61,000 shares for a selling
Price — To be supplied by amendment.
Proceeds—Together with proceeds from private sale of

the

stockholder.

will

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of com¬
mon stock.
Price—25 cents per share.
Proceeds—For
expenses incident to mining operations.
Underwriter—
7R. Reynolds & Co.. Salt Lake City, Utah.

Sun

Wheland Co., Chattanooga, Tenn.

Price

mortgage bonds and $368,679 of 6%

writer—W. T. Anderson & Co., Inc.,

Office —504 Central

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common

June 27 filed 300,000 shares of common stock .(no par).

gram.
Underwriters—A. C. Allyn & Co., Inc., Chicago,
111., and Scherck, Richter Co., St. Louis, Mo. /V-/V77/7Y

loans, to retire $950,000 of 4%%

expenses.

Underwriter—None.

None.

United States Mining & Milling Corp.

July

duce short-term

Suburban Land

Ave., East Minot, N. D.

Feb. 20

debentures due Aug. 1, 1976. Price—To be supplied
by
amendment.
Proceeds—To finance diversification pro¬

York.

Proceeds-^ For mining

(letter of notification) 240,000 shares of common
cents). Price—$1.25 per share. Proceeds—
incident to oil production. Office — San
Jacinto Building, Houston. Tex. Underwriter—Mickle &
Co., Houston, Texas. Offering—Put off indefinitely.

June 28 filed $30,000,000 of debentures due July 1, 1981.
Frice—To be supplied by amendment. Proceeds—To re¬

subsidiaries.

it Westland Oil Co.
July 23 (letter of notification) $300,000 of 5% subordi¬
nated debenture bonds in denominations of $1,000 each-

Williamson Co.,

Jan. 19

stock (par 10
For expenses

July

& Co., Inc., New York

Mexico

(letter of notification) 50,000 shares of common
stock. Price—At par ($1 per share).
Proceeds—To start
a dealer or brokerage business.
Office—921 Sims Bldg.,
Albuquerque, N. M. Underwriter—None.

Togor Publications, Inc., Now York
March 16 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.

($100

Securities Corp. of New

Western

(letter of notification). 380,000. shares of com¬
mon stock (par 10 cents).
Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
-—Electrical heating. Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.

Price—At par

"7.*'':

Underwriter—None.

Feb. 13

June 29

stock, plus $1,800,000 of its convertible debentures.

Stevens

„

it Western Mercury & Uranium Corp.
July 16 (letter of notification) 150,000 shares of common
stock. Price—At par (10 cents per share).
Proceeds—
For exploration costs, working capital, etc. Office—4225
Garden Place, Las Vegas, Nev. Underwriter—None.

•

Association."
Price—Proposed maximum is $7.50 per share. Proceeds
ers

Ohio.

oversubscription); rights to expire on Aug. 21.
per
share.
Office—319 W. Market St.,

Lima, Ohio.

—To pay

(letter of notification) 15,001 shares of common
stock (par 10 cents) to be offered for subscription by
stockholders. Price—$10 per share. Proceeds—For ex¬

Feb. 27

JTune

(with

Thermoray Corp.

ferred stock.

Southwestern Oklahoma Oil

217 Washington

Price—$12.50

Abilene, Texas

Texas Calgary Co.,

Underwriter—Western States In¬

Tulsa, Okla.

vestment Co.,

—

it West Ohio Gas Co.
July 16 (letter of notification) 17,959 shares of common
stock (par $5) to be offered for subscription by common
stockholders of record July 23, 1956, on a l-for-20 basis

expansion program.

For mining expenses.

Office

Clarksburg, W. Va. Underwriters—Barrett Herrick & Co., Inc., New York, N. Y. and Ross, Borton &
Ave.,

March 1

Security Loan & Finance
July 17 (letter of

working capital.

ceeds— For

St., New York, N. Y.

(8/J4)

Price—$10
construction of plant, working

corporate purposes.

Vickers Brothers, New

Co.; Kidder, Pe^ro&y & Co. Bids—Expected to be
receive<i~«ii1 a.m. (EDT) on Aug. 29, at 90 Broad

■

Republic Cement Corp., Prescott, Ariz.
20 file! 265.000 shares of *-»*!*! stock.

Commercial and Financial Chronicle... Thursday, August 9, 1956

Underwriter—Gran-

Warner & Swasey Co.,
Cleveland, Ohio (8/14)
July 19 filed 120,000 shares of common stock (par $1);
Price—To be supplied by amendment.
Proceeds—For
proposed expansion program. Underwriter—Blyth & Co.,
Inc., San Francisco and New York.

Washington Natural Gas Co.
June 18 (letter of notification) 187,500 shares of com¬
mon ^tock
(par 10 cents). Price—$1.25 per share. Pro¬

For

Air-Vue Products
Feb.

was

Corp., Miami, Fla.

reported

early registration is expected
Price—Around $4.25

of 150,000 shares of common stock.

share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky &
Co., Inc., Chicago, I1L

per.

it American
Aug-

Insurance Co.,

was

announced

that

Newark, N. J.
a

registration statement

Sd2eshares lr\ August covering
*lled of
1,750,000

a proposed issue of
capital stock (par $2.50) to be offered

exchange on
shares

surance

Co.

share-for-share basis for

like number

capital stock of American Automobile In¬
St. Louis, Mo. The
exchange offer will

Volume 184

Number 5558

...

The Commercial and Financial
Chronicle

(609)
be conditioned

than

80%

The

pany.

September.

acceptance by the holders of not less
outstanding shares of the latter com¬
offering will be; made sometime during
J " '•>'
on

Columbia Gas System, Inc. (10/2)
15 it was announced
company

the

Feb.

issue and sell
$30,000,000 of debentures. Underwriter
To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Morgan
Stanley & Co. Bids—Expect-

American Louisiana
Pipe Line Co.
July 2 it was announced company plans issue and sale
of $15,000,000 of cumulative
preferred stock. Underwriter
—May be determined by competitive bidding. Probable

ed to be received

it
was
announced
that following
proposed *
with Panhandle Oil Corp., American
Petrofina,
Ltd. will offer to stockholders of
Panhandle and
Petro¬

Belgium and to Canadian Petrofina the
opportunity to subscribe to additional MA" stock of American

Nov.

• ,v.

Intends at

was

Price—$11 per share. Underwriters—White,
Weld & Co.? BIytb'&
Co., Inc.; and Hemphill, Noyes &<
Co.'■;
v
•> "'r•>,

Du Mont

Ayg. JO it

American Telephone &
Telegraph Co. (10/1)
July 18 company announced stockholders will vote
Sept.
5 on
increasing the authorized capital stock from 60,000,-'
to

100,000,000 shares of which about 5,750,-

Foremost

suance

stock.

its

stockholders.

Fairchild

—To reduce bank loans. Underwriter—To be
determined

Boulder,

Colo.

Underwriter—Allen Invest¬

For

may in the Fall do
public financing. Proceeds—For expansion. Un¬
derwriter—Lee Higginson Corp., New York.U-':.'>

(11/27)

this

exact

the

The

year.

timing

sale of

class

the

securities

security to

transaction

have

the

second

be sold and
not

been

Public

Aug. 6 it

•

Utilities

new

issue of

common

stock will be offered

July 10

company announced

of California

Aug. 6 it

Rhoades

Marsh

July
sell

the

Brothers; Merrill Lynch, Pierce, Fenner & Beane
(jointly); Salomon Bros. & Hutz¬
ler and Union Securities Corp. (jointly); Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); Lee Higginson
Corp. and Carl M. Loeb, Rhoades & Co. (jointly); Stone
& Webster Securities Corp. Bids—Tentatively scheduled
to be received on Sept. 10.
v,,
f

Bros. & Hutzler:

and White, Weld & Co.

(2) For preferred stock—Lehman Brothers and Eear, Stearns. & Co.

(jointly); Blyth & Co.,-Inc. and The First Boston Corp.(jointly); Kidder, Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane v • Gulf States Utilities Co. (9/10)
(3) For common stock—Blyth & Co., Inc., Merrill Lynch,
July 14 company announced that it intends to offer pub¬
Pierce; Fenner & Beane and Stone & Webster Securities
licly 100,000 shares of common stock (no par;. Proceeds
Corp. (jointly); Glore, Forgan & Co.; The First Boston ? —To repay bank loans. Underwriter—To be determined
Corp.; Lehman Brothers and Bear, Stearns & Co. (jointby competitive bidding. Probable bidders: Stone & Web¬
ly). ;Common stock will probably be offered first for
ster Securities Corp.; Merrill Lynch, Pierce, Fenner &
subscription by stockholders. ; "
Beane and Lehman Brothers (jointly); Carl M;
Loeb,
Central Wisconsin Motor
Rhoades & Co.
Bids—Tentatively scheduled to be re¬
Transport Co.
ceived on Sept. 10.
July 9 it was reported early registration is expected
V
v
"
* '-V
.

34,600 shares of 6% convertible preferred stock (par
and 66,500 shares of common stock (the latter to
sold by certain stockholders).
Proceeds—From sale

Haskelite

$10)
be
of

preferred

provide funds

for

expansion.

Wisconsin

Rapids, Wis.; Underwriter
Milwaukee; Wis. r
Coastal

Feb. 29 it
with

the

system
man

Transmission
was

announced

$68,251,000.

Brothers and Allen &

565.7

mile

reported company may be considering sale
to $1,500,000 bonds or debentures.

Underwriter—May be G. H. Walker & Co., St. Louis and

Co.,

if Hawaiian Telephone Co.
July 30 it was announced that

pipeline

Underwriters—May be Leh¬
Co., both of New York.

$1,000,000

about

New York.

Houston, Texas
application has been filed
of

was

Office—

Loewi

;

Manufacturing. Co.

July 16 it

Corp.,

FPC for construction
cost

—

plans

stock.

issue

Proceeds—For

and
ex¬

program.

Proceeds
*

For development of branch stores and regional shopping centers. Underwriters—Goldman, SachsJ

company

plans to acquire

a
15% participation with American Telephone & Tele¬
graph Co. in a proposed $36,700,000 California-to-Hawaii
cable and, if approved by the directors on
Aug. 16, w.ll
be probably be financed by a debenture issue. Hawaiian

—

& Co. and Lehman

Meadowbrook

Lehman

Incorporated;/Equitable Securities Corp,

•

company

common

Blyth & Co.j Inc., Kidder, Peabody & Co. and MerrillLynch, Pierce^ Fenner & Beane
(jointly); Blair & Co.

•

additional

some

May Department Stores Co.
t
July 19 it was announced that this company may under¬
take financing for one or more real estate companies.

„

• Gulf States Utilities Co,
(9/10)
July 14 it was announced company plans to issue and
re-;' sell
$15,000,000 of first mortgage bonds due 1986. Pro¬
quirements for new money may be obtained in the
second half of this year. Underwriter—To be
ceeds—To'repay bank loans and for construction pro¬
determined
Underwriter—To be determined by competitive
by competitive bidding. Probable bidders: (1) For bonds v" gram.
bidding.
Probable bidders:
—Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.-and A.
Halsey, Stuart & Co. Inc.;

C. Allyii & Co.,Inc. (jointly); Salomon

Co.

reported

was

Underwriter—The First Trust Co. of
Lincoln, Neb.
Stock Increase—Stockholders will vote
on
increasing authorized common stock from 100,000 to
200,000 shares.
r

stantial interest in the

deter¬

which owns the Quaker
Corp., of Lancaster, Pa., an alumi¬
'

Steel

pansion

Fort

Worth, Tex.
Carl M. Loeb,
Co., New York, who has acquired a sub¬
corporation, may handle any new
financing that may be necessary.
•
r

hall

stock of this company,

—

(Texas)
July 16 it was announced this corporation is planning a
5,000-acre industrial development on two sites midway
and

(Karl), Inc.

Long Island Lighting Co.
April 17 it was announced company plans to issue and
sell next Fall $20,000,000 to $25,000,000 first mortgage*
bonds. Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly)? Blair & Co., Incorporated and
Baxter. Williams & Co. (jointly); Smith, Barney & Co.

Southwest Corp.

Dallas

public offering in Sep¬

fabricator.

num

plans to issue and sell about

stock for

was

State Metal Products

(9/11)

Corp.; Kuhn, Losb & Co. and Salomon Bros.;
(jointly); Paine, Webber, Jackson & Curtis
and Stone & Webster Securities Corp. (jointly);
White,
Weld & Co. and Kidcer, Peabody & Co. (jointly). Bids
—Tentatively expectel to be received on Sept. 11.

between

common

reported the Office of Alien Property plans
offer at competitive sale its holdings of 63 % of the

Hutzler

Great

Un¬

Underwriter—Lazard Freres & Co., New York.

common

General Telephone Co.

Increasing

reported company plans early registration

if Liebernecht

common stockholders before April,
Proceeds;—-To repay bank loans, etc., and for con¬

struction program.
•

issue of

tember.

mined/ It is also possible, if favorable
money conditions
prevail at the time, that some portion of the 1957

;

was

Underwriter—Straus,
*'

proposal

bidders:

subscription by

1957.

Central Illinois Public Service CoMay 16, M. S. Luthringer, President, said the new money
required to finance the company's 1956 construction
program is estimated at about $5,000,000 and will be
from

;

Light Co.

approved

bidding.
Halsey, Stuart & Co. Inc.; The First
Boston Corp. and Blyth & Co., Inc.
(jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp.
(jointly); Lehman Brothers
and Bear, Stearns & Co.
(jointly). Amount and timing
has not yet been determined
(probably not until first
half of 1957).
-J:'
if Kay Jewelry Stores, Inc., Washington, D. C..

Securities

Bids—^Schedul ed for Nov. 27.

obtained

purposes.

Power &

stockholders

Probable

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable

writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co
Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc.

corporate

McDowell, Chicago, 111.

bonded indebtedness of the
company by $20,000,000.
derwriter — To be determined by competitive

$20,000,000 of first mortgage bonds, series F. Proceeds—
To discharge bank loans and for construction program.-

announced company plans to issue and
of first mortgage bonds due 1986. Under¬

was

(jointly); W. C. Langley
& Co, and The First Boston
Corp. (jointly); Equitable
Securities Corp.; Blyth & Co.,
Inc.; Kidder, Peabody &
Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly)

general

sible that
for

Kansas City

April

Corp.
April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds;
and $14,000,000 of new preferred stock.
It is also pos¬

and

$15,000,000

Merchandising of Milwaukee

General

Kidder, Peabody & Co. (jointly); Blyth &
Co., Inc.; The First Boston Corp. and Salomon Bros. V
6 Hutzler
(jointly); Lehman Brothers; White, Weld &
Co.1 Bids—Expected to be received on
Oct. 9.

sell

Illinois Bell Telephone Co. (8/31)
was announced the
company plans to offer to
its stockholders 580,531 additional shares of capital stock

;

Blosser &

Carolina Power & tight Co.

some

was reported company plans in the near future
issue and sell 180,000 shares of common stock (par
$2.50).' Price—About $11 or $12 per share. Proceeds—

California Electric Power Co* *
(10/9)«
July 16 it was announced company plans to sell
$8,000,000 of first mortgage bonds.
Proceeds—For construc¬
tion program. Underwriter—To be
determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.;^Shields & Co.; Merrill Lynch, Pierce, Fenner &

March 22 it

Corp., Houston, Texas

application has been filed
permission to construct a 961 mile

Hudson Pulp & Paper Corp. ;
25 it was reported company

Co., Boulder, Colo. Stock to be sold in Colorado.

Beane

Oil
an

June

July 30 it

share). Proceeds—To construct hotel; set up in¬
loan company; and for
working capital and

stalment

general corporate purposes.

announced

was

FPC' for

the

Underwriter—Glore, Forgan & Co., New York.

General

par

ment

June 29 it

General Contract Corp., St.
Louis, Mo.
April 18 it was announced that company plans $5,000,000
additional financing in near future. Proceeds—To
go to
Securities Investment Co., a subsidiary. Underwriter—
G. H. Walker & Co.. St. Louis, Mo.
'

was announced
company plans to offer and
sell 3,000,000 shares of its common stock.
Price—At

per

The time, amount and terms
conditions.^ Proceeds
To be

& Co., Inc., San
Francisco, Calif.; and Scharff & Jones/
Inc., New Orleans, La.
K'";}1
;'■/
V/":

gram.

July 16 it
($6

at rate of one new share for each eight shares held as
of Aug. 31; rights to expire on Sept. 28. About 99.3% of:
if Ford Motor Co., Detroit, Mich.
the presently outstanding stock is owned
by American
Aug. 3 it was reported this company is planning to create
Telephone & Telegraph Co. Price — At par ($100 per
and
issue
between
$300,000,000 and $400,000,000
of;; share). Proceeds—To repay advance's from parent. Un¬
debentures. Proceeds—To help finance expansion
pro-; derwriter—None.

by competitive bidding. Probable bidders: W. C.
Langley & Co.; Stone & Webster Securities
Corp.; Salomon
Bros. & Hutzler;
Kidder, Peabody & Co.; Harriman Ripley & Co. Inc. Bids—Expected to be received on
Sept. 11.
Registration—Planned for Aug. 15.

Corp.,

pipeline system vto cost $105,836,000. Hearing on this
project started on July 9. Underwriters—May be Blyth

Instrument Corp.

11,

future.

Blackstone Valley Gas & Electric Co.
(9/11)
April 30 it was reported company plans to issue
25,000
shares cumulative preferred stock
(par $100). Proceeds

Acceptance

John H. Clough, President, announced, that
working capital financing will be required in the near

rities Corp. and
Kuhn, Loeb & Co. (jointly); The FirstBoston Corp.; Harriman
Ripley & Co., Inc.

Boulder

Camera

market.

market

Houston Texas Gas &
with

—

June

depend

Feb. 29 it

This

—

Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Union Secu¬

the American

dividend, contemplates that additional shares will be

offered

offering will be un000 shares are expected to be
offered on or about Oct. 1: * derwritten.
Kuhn, Loeb & Co. and Van Alstyne, Noel
for subscription by stockholders on
the basis of one new
& Co. handled Du Mont Laboratories class A stock
fi-,
share for each 10 shares held on a record
date in Sep-'
nancing some years ago. Stockholders of Laboratories
tember to be fixed by the directors.
Rights are to expire on Oct 10 approved formation of
Broadcasting firm.
on Nov.
5, 1956. Price—$100 per share.; Proceeds—For
Eternalite, Inc., New Orleans, La.
expansion of plant. Underwriter—None.
May 28 it was reported company plans to issue and sell
Appalachian Electric Power Co.
"
about 200,000 shares of class A stock.
Price
Around
May 31 it was announced company plans to issue and
$4.50 per share. Underwriter
Vickers Brothers, New
sell in December
York.
$24,000,000 of first mortgage bonds.
,.•/
„

announced

was

mines, coking plants,

Mont

stock

•

Corp.

loaned to firms in the Community for
expansion of coal
power plants and iron ore mines.-

following is¬

common

Television

Corp. and Lazard Freres & Co. has been ap¬
pointed to study the possibility of a loan to be issued
on

was announced that corporation,
Dec. 2 to stockholders of Allen

Boston

Underwriter—

will

Laboratories, Inc. of 944,422 shares of

Dairies, Inc.

its stockholders the right

Broadcasting Corp.

■

that

purchase its Dolly Madison
Allen & Co., New York.

Petrofina.

000

announced

future date to give

approximately $5,-

High Authority of the European Coal and Steel'
Community, Luxembourg
July 9 this Authority announced that an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First

Dally Madison International Foods Ltd.

stockholders on Aug. 10 will
vote on increasing the authorized common
stock from
400,000 shares to 1,000,000 shares, in order to provide
options (to officers and employees), and for future financing. Underwriters—Weill, Blauner & Co., New
York,
and Hallowell, Sulzberger &
Co., Philadelphia, Pa.

capital expenditures,
financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
Dodge & Co.

will

•

Radio

July 25 it

meet the cost of present proposed
It appears that some additional

merger

investment

Oct. 2.

Co.'s

Underwriter—Probably Kidder, Peabody & Co.,

York.

Herold

Co., Chicago, III.
\
F. F. Elliott, President, on March 18 stated in
part: "To

American Petrofina, Inc.

fina

New

Crane

bidders:
White, Weld & Co.; The First Boston Corp. Offering—Expected in fourth quarter of 1956.
June

500,000.

—

; *

Telephone

may

Brothers, New York.
National

Bank,

New York

July

shares
share

expire

stockholders
stock

of capital
for

each

Aug.

For expansion.
York.

■:

were

offered

(par $5)

shares held

West

Hempstead,

104,500 additional
basis of one new
July 12; rights to

13.
Price—$21 per share.
Proceeds—
Underwriter—Lee Higginson Corp., New

■...•■■
'
'•;
Metropolitan Edison Co. (11/13)
July 2 it was reported that company is considering the
•

...

sale of

$10,000,000 first mortgage bonds due 1986. Under¬

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld fe

Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Co.
on

(jointly); The First Boston Corp.

Nov. 13.

;

■

Bids—Expected
.:

Metropolitan Edison Co.
> *
April 16 it was reported company may issue in July
or
August, depending upon market conditions, about
,

$5,000,000 of preferred stock (in addition to about $6,000,of bonds).
UnderwriterFor preferred stock also
to be determined by competitive bidding. Probable bid¬
ders:
Smith, Barney & Co. and Goldman, Sachs & Co.
000

(jointly); Salomon Bros. & Hutzler; Harriman Ripley &
Inc. and Union Securities Corp. (jointly): Kidder,
& Co. and Drexel & Co. (jointly); The First
Boston Corp.
Continued on page 38

Co.

Peabody

•

The Commercial
38

and Financial

Chronicle... Thursday, August 9, 1956

(610)
-

Continued from page

Business—A

sidiaries.

—None.

holding

Underwriter

company. '

Louis-San

St.

Ify.

Francisco

(9/5)

July 20 the Interstate Commerce Commission authorized
the railroad to issue not exceeding $61,600,000 of 50-year

''777^777 ;7^7:77;7;77
Oklahoma Gas & Electric Co. * ,7 \
•7-Ji' ■
income 5% debentures, series A, due Jan. 1, 2006, and ;
Michigan Bell Telephone Co.
May 17 stockholders voted to increase the authorized
not exceeding 154,000 shares of common stock- (no par) 7
April 19 company applied to the Michigan P. S. Com¬
preferred stock from 240,000 shares to 500,000 shares and
in exchange for not exceeding 616,000 shares of 5% pre¬
mission for permission to issue and sell $30,000,000 of
the authorized common stock from 3,681,000 shares to
ferred stock, series A (par $100) on the basis of $100.
40-year debentures later this year. Proceeds—For con- :
5,000,000 shares. Company has no immediate plan to do
of debentures and one-quarter of a share of common •
Btruction program. Underwriter—To be determined by
any equity financing.
Underwriters—(1) for any com¬
stock for each share of preferred stock. ~ The exchange
competitive bidding. Probable bidders: Halsey, Stuart &
mon
stock (probably first to stockholders) -*- Merrill
will begin early in September and expire at 3 p.m.(EDT)
Co. Inc.; Morgan Stanley & Co.
Lynch, Pierce, Fenner & Beane. (2) For preferred stock,
,.Qn
195$.
The Chase Manhattan Bank, of New
Minneapolis Gas Co.
^ to be determined by competitive bidding. Probable.bid-... York City,-has beerl designated " as ^exchange agent.
April 16 stockholders approved an increase in the
«frfi Merrill
Fenner & Bea"®
7 Dealer-Manager---Union Securities Corp., New York. 7. ~
authorized common stock (par $1) from 1,700,000 shares
Weld & Co. (jointly); The First Boston Corp.; Lehman
•
* sl
'
'
to 2,500,000 shares. Previous offer to stockholders wasBrothers and Blyth & Co., Inc. (jointly); Smith, Barney
rvSoutti
it J
underwritten by Kalman & Co., St. Paul, Minn.
.
/
& Co * Kuhn Loeb & Co * narriman Ripley & Co. Inc. • * March 9, S; C. McMeekin^- President, announced that it
& uo., ivunn,.i^oeo & ^o., Harriman
77

^upuqr.e*
^ expected that $10,000,000-of new money will be re-t
National Pool Equipment Co., Birmingham, Ala.
Pacific Northwest Pipeline Corp.
quired in connection with the company's 1956 construe-r
March 20 C. R. Williams, President, announced that
July 23 it was reported early registration is expected of
iiohprogranY'The'company;1 proposes to obtain a part'
200,000 shares of common stock.
Price—Expected at $3 1 about 280,000 shares of common stock (par $1) are to be7
its'.new "money requirements from, the sale of $5,-'
per share.
Proceeds — For general corporate purposes. 7 sold in connection with subscription. contracts which -7, qqq,000 of preferred stock and the balance from the;
Business — Manufactures swimming pools and related 7,
equipment. Underwriters—Mid-South Securities Co. and
Clark, Landstreet & Clark, Inc., Both of Nashville, Tenn.
tional first mortgage bonds, and $10,000,000 of>5.6%
that it is estimated;* interim notes and borrowings from banks, will be used
that total construction expenditures planned to start in>
the current year and to be completed in mid-1959 will
amount to a minimum of $200,000,000. Underwriters—i Corp.; and Union Securities Corp. Registration
- 7; "77777.7'.7'' .7
•
.
> >
Kuhn, Loeb & Co.; Harriman Ripley & Co.'Inc.; and r- pected soon.
['. A*-'
*

National Steel Corp.

The First Boston Corp.

Pipe Une Co. of America
reported company plans to issue and

Underwriter—If determined

1976.,

was

announced

and

•

(EDT) on Aug. 15,
at Room
1811, Suburban Station -Bldg., Philadelphia,
Pa., for the purchase from it of $6,873,000 equipmenttrust certificates, Series - FF, to .be dated. April.lv 1956/
and to mature in 29 equal instalments of $237,000 each
from April V1957 to and including April 1, 1971. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros.
will

May be determined by competitive bidding.
& Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld & Co. (jointly).
—

Southern

noon ;

Jan. 30 it

England Power Co.
was

$10,000,000

•

announced company

first

North American

Aug. 3 it

was

mortgage

Aviation, Inc.

announced company soon plans tjo

raise

$40,000,000 of additional funds through an offer to
stockholders to subscribe for additional capital stock.
Underwriter—Morgan Stanley & Co., New York.
some

July

19 it

1956

construction

was

reported

Southern

plans

to finance

its

(costing

about $40,000,000)
through issuance of debentures and treasury funds in
latter part of year. Underwriter—Probably Blyth &
Co.,
Inc.

program

f';;-*v'77';

Offshore Gathering Corp., Houston, Texas
Nov. 18 David C. Bintliff, President, announced

540,651.75 shares of Pittsburgh Rys. Co. Price-^-About $6
per share.
7
'
**

pany has

filed an application with the Federal Power
Commission for a certificate of necessity to build a

864-mile submarine

gas

pipeline off-shore the coast of

Louisiana from the Sabine River to the

Gulf

Coast of

the State of

Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been
determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
botes, convertible into preferred stock at maturity, and V
stock). Underwriter—Salomon Bros. & Hutzler.

common

Jfew York.
i Ohio Power Co.

Inc.
July 27 it was announced that following* 100% stock dis¬
tribution to stockholders of record Aug. 28,1956, a public
offering of approximately 200,000 shares of capital stock,
consisting of shares held in the treasury and by certain
stockholders. Underwriters—Morgan Stanley & Co. and
F, S. Smithers & Co., both of New York. Offering—Ex¬
pected in September.

(10/17)

iu}y _2 i<:
sell

was reported company proposes to issue and
60,000 shares of cumulative preferred stock (par
$100). Underwriter—To be determined by
competitive
bidding.
Probable bidders: The First Boston
Corp.;
Blyth. & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Corp. and Salomon Bros. & Hutzler (jointly); Harriman
y

^ Co. Inc. and Stone & Webster Securities

Corp.

(jointly); Lehman Brothers. Bids—Tentatively expected
to be received up to 11 a.m.
(EDT) on Oct. 17.
~

Oklahoma

July 26 it
by

the

ffI
stock

was

Corp.* Oklahoma City, Okla.
announced company

Oklahoma

Securities

Commission

issue

and

of °klahoma $20,000,000 of its capital

($10,000,000

publicly).

has been authorized

within organization and
Proceeds—To organize or acquire

$10,000,000*
seven

sub-

(9/18)

it was announced company plans to issue

and

Underwriter—To be determined by competitive

gram.

bidding.

Halsey, Stuart & Co.

Probable bidders:

William

Staats

Co.

and

Hornblower

Inc.;

Weeks

(jointly).-Bids—Tentatively expected to be received on
Sept. 18.
Southern

about Oct. 16;

-77

Union Gas Co.

April 19 it was announced company is considering is-,
suance and sale to stockholders later this year - of some
additional common stock on a pro rata basis (with an
oversubscription privilege). • Underwriter—None.
Tennessee

(10/16)7

Indiana, Inc.

Gas Transmission Co.

;

Gardiner Symonds, President, announced that
company
plans to sell about $50,000,000 of ^ mortgage
i bonds late in the third quarter or early in the fourth
May

10,

quarter of 1956. • Proceeds' — For expansion - program^
Underwriters—Stone & Webster Securities Corp., White,
Weld

Co. and Halsey, Stuart &

United
June

29, H.

issuance

States

Rubber Co.

E. Humphreys,
convertible

Co.-Inci
-7

-v7;v:.

Jr., Chairman, stated that

debentures■*,is

one

several

not

been

determined.

Proceeds—Tor help

Loeb.& Co., New Yoik.

finance

7* University Life Insurance Co., Norman* Okla. v ;
by competitive bidding; f ^une:21, Wayne Wallace, President, announced 'company
probable bidders include Halsey, Stuart & Co. Inc.; The "plans in near future to offer to Its 200 stockholders 500,7
First Boston Corp.; Kuhn, Loeb & Goi,7and Lehman v 000 .additional shares of common voting stock _at rate
Brothers (jointly); Morgan Stanley 81 Co; and Drexel
of hot more than 2,500 shares to each stockholder. Rights
Co. (jointly).
<
: ■
:
\
"1.77:;7;wilp''expire on Aug. 1. Unsubscribed stock will be of-

construction program.^ Underwriters—For any;debenture -:
may

—

determined

Puget Sound Power & Light Co. '

7 7': 7 ^

• -

Feb. 15 the company announced that it estimates
program v for-

the", Years

that its
1956-1959 -will

7 fered to residents of Oklahoma only. Price—$2 per share.
>; Under writer—N one.

Virginia Electric & Power Co..-{9/25)7 .7'
plans to issue and sell

amount to

$87,000,000, including $20,000,000 budgeted for
large expansion, the company -says, can be
financed wholly by debt and from internal sources. - Un¬
derwriter—Ifr determined by .competitive bidding, may
include Halsey, Stuart & Co. Inc.; The First Boston Corp*
1956.' This

Feb. 6 it was announced company

$20,000,000 of first Jand ."refunding^.mortgage
bonds.
7 Underwriter—To be determined by competitive bidding.
Probable bidders:
:

Racine Hydraulics &
was

sell

additional

some

common

Co., Milwaukee, Wis.

stock.

Underwriter—Loewi

Offering—Expected

in Sept.

Washington Gas Light Co.

June

—

York.

Securities

•*.;

stockholders approved a proposal ^ increase
the authorized preferred stock by 100,000 shares (par
$100), of which it is planned to issue 50,000 shares later
in 1956.
Underwriter
The First Boston; Corp., New
May

•*.-'

•

Halsey, Stuart & Co. "Inc.; Kuhn, Loeb

Co.; American Securities Corp. and Wertheim-& *Ccf.

(jointly);; Salomon Bros. & Hutzler; Stone & Webstet
Corp.; White,* Weld & Co.; Union Securities
Corp! Bids—To be opened on Sept. 25. V
,7.-../
•
,7 .*•

Machinery, lnc.

reported that company plans t<* issue and

July 9 it

Rochester Gas & Electric Corp.

„

possible methods the company has been considering for
Public Service Electric & Gas Co. *
"4
~
raising $50,000,000 to $60,000,000 which may be needed
April 16, Lyle McDonald, Chairman, estimated that re¬
for plant expansion and working capital. He added that, if
quirements for new capital this year will be: approxi-convertible debentures are issued, they will be offered
mately $80,000,000 to $85,000,000: The types and amount?
-stockholders. UnderwriteF—Kuhn,
of the new securities to be issued and the time of sale 1 Prd rata
common

construction

(10/17)

;

sell $4,000,000 of first mortgage bonds, series C, due 1986;
Proceeds—To repay bank loans and for construction pro¬

was

pected to be received on

bonds

Ohio Power Co.

•

Electric Generating Co.

Southern Nevada Power Co.

•

June 27

reported company may issue and sell about
$30,000,000 first mortgage bonds. Proceeds — To retire
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The
First Boston Corp.; Harriman Ripley & Co.,-Inc.; Glote;
Forgan & Co.; Kuhn, Loeb & Co.; Salomon Bros.'; &
Hutzler and Union Securities Corp. (jointly). Bids—Ex¬

writer—To be determined by competitive

bidding. Prob- /
Halsey, Stuart & Co. Inc.; The First Bos¬
ton Corp.; Blyth & Co.
Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler
(jointly);
Harriman Ripley & Co. Inc. and Stone & Webster Secu¬
rities Corp. (jointly). Bids—Expected to be received
up»
to 11 a.m. (EDT) on Oct. 17.

~
v

bidding.
Probable bidders::
Stuart & Co. Inc.! Union Securities Corp.;
Equitable Securities Corp. and Drexel & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Inc. and Gold-'
man, $achs & Co. (jointly); Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); Morgan Stanley & Co.

July 16 the company announced plans to • negotiate the
borrowing of $70,000,000 probably through- a public of¬
fering of 25-year debentures sometime after Labor Day
(Sept. 3). Proceeds—For expansion program.
Under¬
writer—Goldman, Sachs & Co., New York.'

have

able bidders:

Halsey,

Mass.
July 16 it was announced that a public offering of $4,000,000 5% three-year notes is planned if John S. Bottomly, a Boston attorney, does not exercise his option to
purchase the physical assets of the Boston Post by
July 31; Underwriter—Lamont & Co., Inc., Boston, Mass..

July 30 it

determined by competitive

Post Publishing Co*, Boston,

July 2 it was reported company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬

•

Fuel Co.,

Public Service Co. of
com¬

May 18, it was announced that this company, 50% owned
by Alabama Power Co. and 50% by Georgia Power Co.*
subsidiaries of Southern Co., plans to issue debt securi¬
ties. Proceeds—Together with other funds, to construct
and operate a $150,000,000 steam electric generating plant
on the Coosa River in Alabama;
Underwriter—May be'

Procter & Gamble Co.

company

'
•

reported company may in the Fall offer,

Fenner & Beane.

Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders rights to subscribe for

Northern Natural Gas Co.

■

of California

$15,000,000 of first mortgage, bondsvUnderwriter—To be
determined by competitive bidding. Probable bidders: "
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

Pocahontas

plans to issue and sell
bonds during October
of 1956.
Underwriters—To be determined by competi¬
tive bidding. ^Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

Jan. 3 it

was

Co.

Gas

Counties

Hutzler.

received

financings 7

last common stock

7 7

(8/15)

Pennsylvania RR.
Bids

Probable bidders: Halsey, Stuart

New

Witter

Dean

Kuhn, Loeb & Co. Bids—Had tentatively been expected,
to be received on Sept. 5. - Offering—Postponed indefin-

■

plans to merge its *

company

4Del.) 7

(

Co. Inc.;

subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined. Under¬
writer

Stuart & Co. Inc.; The First Boston Corp.;v
& Co. (jointly);. Blyth & Co., Inc.lv

hers: Halsey,

Walter E. Seibert, President, announced that
will soon file a registration statement with the ¥7i|ely;v.:-; •-. ; *<-*y
'"r *7.7/7:'"7 :;1 7- ■
SEC preparatory to an equity offering planned to take
7^ Southern California Edison Co.r"': *
7
place later this year. Business—To explore, drill and ,7 Aug. 7' it 'was i announced /thht' cempdnyj new plans tof ■
operate oil, gas 4nd mineral. properties in the United
offer and sell 500,000 shares of common stock (par $25").-'.
States, Cuba and Canada. Office—120 Broadway* New
Proceeds—For construction program.
Underwriters—."
York, N. Y.
The First Boston Corp. and Dean Witter & Co. handled

England Electric System
it

7. 7

April'9,

White, Weld & Co.; Lehman Brothers and Union Secu¬
rities Corp. (jointly).
New

company

by competitive bid¬

ding, the following may bid: Halsey, Stuart &

Jan.

■

Pan Cuba Oil & MetalsCorp.

sell
Spring $35,000,000 of first mortgage bonds due
was

*•..' ■\

Gas

Natural
Feb. 20 it

late this

Jjuly 5 it was announced company plans to sell not ex->

the company announced

March 12

was

announced company proposes to

;

finance

-proposed, new-construction of pipeline in Virginia ^to
cost about $3,380,000 from funds generated by operations,
sale of common stock and temporary bank borrowings.
Underwriter — The First Boston Corp., New York; and.
Johnston, Lemon & Co., Washington, D. C.

Volume 184

Number 5558. The Commercial and Financial
Chronicle

(611)

[>
not

been

under

any

pressure

bolster

•

railroads
which

gains

y^r

This

the

will

adverse

results

rival

the

shown

this

^^vxiie^oi

only* partly due to

effect

the

almost

tan

will

the

the middle of

'???tJ3?ar and wh.ich.

idled both the Louisville &
ville and its 75% owned

May

the

this

---

-Nashville has kept
pace witn the

growth of its business
expenditures

for

road's

There

physical

windward

there

where

today:

are

discounts

are
at new highs, and
rectification is declared to be

any

should

in the

source.

ideological trap, illaccording to its statute,

same

though,

interest

of this year amounted to $5.63
per

modernization

its

1955.

estimated '

that

full

The

does

hot

include

any

FHA

rate

under

present
it is as-

would,
sumed, further tighten the market
for VA guaranteed
loans, a situation difficult to contemplate politically. So again the functioning
of FHA is impeded by extra-mar-

1955.

currently ear's earnings esti-

mate

the

circumstances

for

raised

in the past it had been lowered
with the same objective—a rise

year

per

could

rate

as,

result it is

1956

earnings will be $12.50
as
compared, to $10.53

complete dieselization.- Because of
its heavy dependence on coal as a

part

the gain in consolidated net
tion* to this
illusory gain, there -traffic item, and thus.Quite' jealous that willarisefrom the
merger
have, been the actual gains arising of its good standing with the coal
ket considerations.
1
:with the Nashville, Chattanooga &
hoth from the generally -higher companies as
_'
- a
shippers/the h & N St. "Louis which has received the
level of the
Mixed-Up W orld /
economy and from has .been one of the last roads to
recommendation of the ICC exam•the further growth of
I have gone into these developthe Louis— dieselize. It was reported in iJune
inef and niay become effective
.ville & Nashville itself.
ments in order to reveal to you
'
9^ this year, however* that with later this
year*
Based on estiOn the latter score, the total of the
the mixed-up sort of socio-politidelivery of two additional mates for
1956, this mergOr would cal world in
189 new industries were located diesel
which the mortgage
units, all steam ? operation :add; about
$3 million annually to man
on the L & N in
finds himself today ana to
1955, continuing would be. termihated; The *instal-Ethe net income
of the L & N after
..the progress of 1954 when .187 lation of 29 diesels
which he must in some way adlast year and
eliminating some $767,000 divi<were
just his operation. It is, as you
acquired, and it is stated 56 -earlier IMs -year had already
;<jehd which this road has been rewill recognize, quite a different
•that 90% of the 1955 achievemerit diesehzed all tram
movement, exceiving from the subsidiary on the world from those of the commer.J'.1S
of permanent
character and, cept in
Kentucky coal fields. 191,746 "Nashville Chat"
shares cial banker or the investment
•

•

furthermore, represents

Dieselization,

35%

over

investment than the almost

ir.ore

.equal

number

the

.year. In addition, the expansion
of existing industries on the
road's
line represented an investment of

$105

over

million

1955

character
Nashville
prior

signal the growth
the Louisville &

which

1953

recent

had

years

traf-

other

which it

mod-

terms,
L &

the

Class

However,
sensitive not only to the level of
steel activity in the
Birmingham
.district, but also to that of the
,

Great Lakes area as well to Which
'It ships a large volume of
coal,
the

,1954

slipped somewhat in

relative

-and

the

1955

.distorted, of

these

picture

measures

badly

was

by the two-

course,

The

road*

title

orovide*

inadequate

picture

its

.extensiveness and of its territory.
Actually the principal routes of

.this 4,732-mile road extend, in

.Mobile end *Pensacola via Louis/ville, Nashville and Birmingham,
-to

another,

Atlanta

.branch

from

while

line

"Memphis.-

o n g

shown

viai

Mobile

ports.

and

vj ;

hfx

r'Unr.v.fioiri
-

its

own

Atlantic Coast Line, Virand,
rich Kentucky,

the

been classed
.to

&
as

has

for

years

"coal road:" Due

diversification, however; aris-

ing
.ing

largely
largely

from
irom

the
tne

progressive
progressive
-

ascendant^
increasing:»from
;roughly 32% of freight revenues
in

1941

1953/

42%

been

last

after

year

high as 47% in
another measure, rev-

|;-.enues of the L & N from
creased

124%

between

1941

and

as
compared with the 104%
increase in this traffic for all Class
same

.meantime,
-around

period.

has

30%

held

Coal, in the
steady

quite

freight

revenues

.prior to 1948 but declined to 25%27% in the 1949-54 period. How<ever,

coal

showed

..gain to 32.6%

the

1956

relative

due

rbigh rate of steel operations
to

the

and

bargain

and

lender.

between
He

bor-

will

seek

the causes of the trend that would
let government say who should
get the money and how much and

under what terms. He will want
to improve the system, from its
very roots in archaic statutes, to
prevent this eventuality. He will
to complete the adaptation
of the mortgage system—the private mortgage system—to the rewant

ouirements of

modern economy,

He will want to avoid the stagnating effects of state domination and
direction. He will want to know

changes

the

government along with all who
have need of borrowed funds.
i

should a
himself to

In order to do what the wants
to do, the mortgage banker must
have knowledge and understand-

before eivin* ef

to 332.3

million

the

rules

ask,

may

mortgage

devote

from

man

why

expose

himself

mortgage
sharos

shared

2 43&38Q

mamv

for

the

lending

conventional

ing of this peculiar half-world in
which

now

exists

and

the

forces at work within it and upon
propit. The gaining of this knowledge
erty?
Some answer these ques- and understanding must be part
tions by doing just that, andquite of- an education that-takes into
successfully too. But the matter full account the political as well
cannot be settled that easily. FHA
as-the economic implications of
and VA are very big facts in the' his
activity. This is part of the
residential,

«RiVs>n commercial,'and industrial

outstandinjr to

riow

terms

mercer

tenance-xatlo -has TshPwn Similar
i
stability. The 1955 figure was 35%
The* current price of about 103
for - this account os ' against the for L-& Nf up from 83 ^ this year,
average of 36% for the same five- probably reflects anticipated gains
mortgage world and,
year period, and it should be com* "from the merger as well as general
cannot be

facts, they

task

would lay before

you.

ignored.

mented that the

very minor droo

in the 1955 ratio indicates

improvement.

well

It also may reflect

the expectation of

sustained outlay in spite of thetw°-m0"th strike. The L & N has

Even

chooses

increase in

FHA

the

not

and

mortgage

banker

business

Carolina Sees. Add

with

(Special to The Financial Chronicle)

he cannot escape
the dividend rate, now $5, either the
impact that they have on the
before or after a possible split,
investment market- as a whole.

VA,

LainuASIER, S. C.

Read

^lce» Jf- is representing Carolina
^Tec"r ]es CorP?ratiop of Raleigh,
findr Jf;
frpm offices at 700 Marion

Moreover, unless he is unusually

Continued from paqe 12

favorably situated, he will
that, in avoiding these contacts, he
will seriously restrict the area of
his activity. For all their defects

Government

and

complexities,

offer
to

Mortgage Business
...

to' appeal to the private < be looked*,
market.

The final

result

there-

right

upoh

under

all

ihatter

conditions.

elements

the

-and

the

modern

mortgage

market

industrial

econ¬

Their essential elements

ability

This

Joins Baxter Williams

•

(Special to The Financial Chronicle)

essential

are

are:

bring the market
within the reach of the mass of the

Slms Drive.

theseJ systems

that

modern

the

omy.

Wt^'we'iw^re

jstence or contemplated,
*■ •'

After th a
After the

■

war
war, an
an

-1.»

••

nth
entirely

l0an rate' like the" FHA interest
was

then

existing market.
vuiwivvAj
vuc
fortunately, the vvitgiuod)
Congress,

•

new

tomed

element

set in conformity with

was

the

accus-

av-Lup

wartime

was^mtroducedunto the . dominance of monetary policy by
the Treasury, did not contemplate
hom$ ipans. to veterans [by. thQ;. the
possibility of a rise in interest
^Administration. Here rates As rates crept upward to
agam was a basically simple and
a
noint wherp the <?pf limit wa«?

Norman
with

need for

longer generally attractive to
private lending institutions, and

low

veterans

the failure of the states to

was

fundamental

reme-

dies.'All the old obstacles remain

loans

and,

housing production, a serious
crept in to eompensate for the
housing shortage existed. More^;
rjgidity of the rate structure^.the
over, with the hand of rent condiesis was advanced that veterans
trol (which gave a great advanwere

tage to the stay-at-homes in
veterans

were

advantage.
The idea
program
erans

spedai
;

ctis-

minimum

men

accumulate savings

war

with

years.

case

were

Pxrjansion

long

bers

they

do,

Federal

Since this is the. case, the- mort¬

;

learn

Pr°"

the

FNMA

terns

duct

the role

limited

way

on-

his

of discounts

which

the

sys-

must

con-

his

way

around.

view,

more
;

rate

his

From one point

expertness

these

important to those who seek

to borrow

mortgage security.

This point of view,

recognized
as

intricacies

within

matters makes his function all the

pro-

means

FHA, however,'this plan also-of maintaining the flow of credit,

the

He must first of all

activity and he must be
familiar with the procedural ma¬
chinery. In short he must know

threatened breakdown of the
gram, reluctantly raised the
a

Again, the pat
direct lending and

&
Co.,
Commerce Building, mem¬
of the Midwest Stock Ex-

.Fahey, Clark Adds.
(Special to The Financial Chronicle)

CLEVELAND,
R.

Mann

has

Ohio —William

become

connected

with

;

With Green, Erb Co.

(Special to The Financial Chronicle)

;

CLEVELAND, Ohio —William
Campbell is now associated
Green,
Erb
&
Co.,
Inc.,

with

N. B. C. Building, members of the
Midwest Stock Exchange.
;

McDonald Adds

gage banker must be aware of its

preferential. significance.

Events, however, as they sometimes do, caught up with theory,
In 1953, Congress, in face of a

during the/and in

As had been the

pos-

who had been in the

associated

Williams

intervention will not be displaced.

eratinn

non-existent

would- be

Army four or five years to compete with those who had been able
to

solutions

guarantee
that, by giving vet-

—....

of the loan

was

J il

pos-

the' market,
.

downpayment,
-sible for

entitled

become

the

compensations to the statutory ob¬
stacles
provided
by
FHA
and
later by VA have covered up the

Ppmi wnere tne set limit was
on

already pointed out,

has

Baxter,

Union

first into the mortgage area.- That
situation has not -changed.
The

discounts

have

CLEVELAND, Ohio —James A.

Fahey, Clark & Co., Union
adaptations
re--.Commerce Building, members of
quired by economic evolution that the Midwest Stock Exchange.
brought the Federal Government

mortgage^ picture — the guarantee
of

effectuate

Un-

the resumption of coal exports .soon took on
special overtones. But then it again took its stand
under
the
economic
assistance What began as a matter of reason-* on the matters of abstract
right
program.
~
ableness in an "emergency came to and obligation and determined to

free

game.

the complexities I have described?
Why not, forget FHA and VA and

averages 35.5% for the 1951-55

.1954

I in the

rower

jor

miiiiori

35.8% m 1955 asagainstthisroad's

manufoc/sS)' heav?

tures and miscellaneous traffic in-

the mortgage transaction

preserve

mortgage banker will want to do
this.
He will instead prefer to

how to make use of government
without becoming a creature of

should result from the consolida-

the

having

the economy to that of a paid
agent or employee of a goveramentalized mortgage system. I do
not believe that the thoughtful

caprice,
happily free from annual ma-

You

.industrialization of the South, the
<DractiCai idea^Amid tne super*'
practical iaea. ,, Amia thp%unprproportion of manufactured j and
prosperity t)t[thq immediate Postmiscellaneous traffic has been on
years and after a decade of
-

cares to, gathering his rosebuds while he may,
and face his ultimate transformation from that of a free force in

■.

gmia, Tennessee and Alabama coal

fields, the

much less subject to legis-

with the trend if he

and

^ncung, ior wnicn we now nave
par-rate,
a proliferation of
programs in ex- -

'cArvin
serving

can move

roa>j»s sinelv

gain, but the effect dollarwise has been blurred by a dis-

interest in

4+o

lative and administrative

definite

and

two far-

The mortgage banker

;

[Owning a 50% joint
.the Clinchfield with

scope,

limited

step

ther.

*ore ,was hot to prevent "or reduce notion of a right to a special priv- people, and the ability to provide
the encroachment of • goverttpaent, ilege wks applied particularly to a copious flow of funds to all
.to raise new demands for *in- ''the interest rate allowed on the parts of the country—and copious
it
Gulf tervention .by.way of market sup- guaranteOd loans.
is,
despite
the
talks
of
-v"\ Port thnmgti the Federal National ; At the outset, the guaranteed stringency.
Vf ■. '■'•

other

are

the trend

ries

0nly on the basis of the respec.
jjve estimates fot, lQ5fi of tha two

70%

period, for instance, andthd

SarS^spresUlttS^this75^own-

per

freight train hour has

important

originator of soft coal destined to
the * Birmingham steel mills and
elsewhere/ the L i N also handles
*a large vdiuWlof
imported iron
ore

These, to be sure, have
governmental and quasi-governmental agencies To look to and
to deal with; but their dealings

over-all efficiency >
ton-miles

gross

important

westward

a a

banker.

"Nashville Chat"

ment in physical operating ratios,

Cincinnati

extends

N for each

merger

one

.direction, from1 Cincinnati and St.
.Louis southward to New Orleans,

and

for

wholly

The

owns.

ership

(Nashville)): have
been
reflected in substantialimprove-

*nor

paced closely

total.

now

calling

share, thus indicate the issuance
of only 96,380 additional L & N

proportionate-increase-in costs. «
upward trend of revenues of nevertheless has; given • a
whole Southern District group "deal of stability to the road*s

the

and

ernization
s uch
as
the. $15
nmiion, freight facility at Rad-

^instonly.$24 million in the factor of
GlinceilM

•previous year.
These gains

centralized

c o n tr 01

stock part of the legislative program as the opening prayer, car-

to conform to market conditions—

against $3.97 for the corresponding
and
strike-blighted
as

Gross expendi-1
period of

tures on the road's property in
the 1946-55 decade totaled $287.2

him vulnerable to political attack,
Each year, the annual housing bill,
which is considered as much a

politically inexpedient if not impossible. FHA finds itself caught

occasion to draw upon

by heavy

million and has included extenNssh^ v^ivG GTO installation and,7" finally,

Louis, dn addi-

the

Earnings for the first six months

largely

Nashville,

Chattanooga & St.

Louisville

1955 'and improvement.

60-day strike that

-///'v;;/■

the

result,

shape and
the relatively
hign rate of ex¬
penditures could well be an anchor
ever

/;/'V

•

Physically

day finds himself exposed, perhaps more than any other business
group, to the drift toward a statedirected economy. This drift has
already reduced the efficiency of
the market machinery and made

the general rate structure is again
ahead of the fixed interest rate,

to
'

going

farther.

property is in excellent

Louisville & Nashville

Few

from

By GERALD D. McKEEVER

relaxation

earnings at the expense of
maintenance, and has not done so.

Railroad Securities
'

the

keep

however, is
a
narrow one; and the education
we are talking about here calls for
greater breadth than learning cerparticular ways of making a

tain

living.

The mortgage banker to-

Staff

(Special to The Financial Chronicle)

CLEVELAND, Ohio—W. Dennison

Brown

has

become

affiliated

with McDonald &

Commerce

Company, Union
Building, member of

the New York and Midwest Stock

Exchanges.

With United Securities
(Special to The Financial Chronicle)

GREENSBORO,

N. C.—Jarl E.

Bowers
has
become
associated
with United Securities Company,
Southeastern Building. Mr. Bowers was

formerly with Vance Se-

curities Corporation and McDaniel
Lewis & Co.

The Commercial and Financial Chronicle

Continued

exist-

Association's

the

aware

from page 16

The Public Relations Counsel

However, some did feel
membership was a favoring factor in judging qualifications and

standards.

Looks at Investment Counsel

dependability.

TTpHpral

Law's

formitv

thprp

inimical

Sme stote
S

criticisms of certain; professional
attitudes and practices. For example/ one investment house
stated that they felt it was wrong
One

tor needed advice the most.

were illuminating and rather than stressing the imporhelpful. Likewise, they confirm tance of business fundamentals. •
tional Conference of Commission- 'h<r
tremendous^ job you face to
0ne highly reputable investers on Uniform State Laws, now
2am adequate public recognit
ment banker, who believed in
drafting a Uniform Securities Act. and support.,
, a
the future of your profession personally discussed the whole
You are trying to include in this Importance Recognized
sonally discussed the ^whole field
^
a special definition of "investment
,jT
v
■
'
with me at some length. Some of
answers

Coromitehasbeen

the Na-

consultation with

recent

counsel"

Federal statute and

relationship
in

Ruch
sucn

provision

J"™n

dueUto

takes

There

care

of view

Wickenden's criteria?

nnint.

this

defines

offered

rlnnhtprl

investment

all

include

the

clauses

he made

which

income

the present code provision that no
shall
issue
a
printed
service.

the
than

take

help

would

Likewise
S

their present state of relative sta-

the

and

prohibition

^djht

mvest-

here

thov

Assoin uplift-

your

function

*1—

potrnf' were

presented

his

And
state

siaie

even

today they are
flux.
xiua.

comparative
comparative

They find that they need contininternret

themselves

greater modification

raised prevent even

ment. One mentioned a development within the profession where-

that there" was a danger, of
deviating from a strictly unbiased
position — the hallmark of the
profession.
/
v
felt

ThTv^us^Tdaof themselves

ing* They must aaapt tn^seives

to changing scientific, technologi-

ovation of the profession against
encroachments,
The
The

com-

As regards
several
investment

and

was
im-

necessarily devote even

and must

criteria for Associa-

membership the thought
expressed that though it is

which

„

wOT^rAatpr

afe,
state of flux than the older ones

Uon

own

professions

newer
newer

&*ew UP,

panies, endowment funds, etc. not

„

opinion

the
me-

who independent research staffs.

those

and practice. A# considerable part
of the energy, time and money of
their professional associations is

services in
field-rsmall to

your

institutional
dium sized banks, insurance
,

the public

conduct

to registration, training,

future, there
expanding

the

concerns

mention

market for

should have provisions large enough, to have their

f°r punishment
break it.
why

ite fdlt that the coderto be

etc

bility.
in

and

lack of JJfw to interpret tnemseives to
In adthe public and woo the public to

which I think deserving of com-

was

profession

workaW

between types ot
wh(,fl_

a
r

the

mind,

ingu?XX'
arable experience in investments,

/ad
_

public

the

Nevertheless, he felt
ciation

law

by some investment counsel firms caV and social conditions. |
constitution
to operate one or more investment
This need for continuing adjustparticular excep- trusts to bolster their earnings, ment in the older professions is
requiring invest- Insofar as such trusts involve a shown by the fact that their stand-

advantage
profession.

ing

the

profes¬

ques-

future,

understanding

certam

older

medicine, for instance, some 400 years to reach

same

likely

the

taken

has

sions,

Correspondents

portance,

Needed

Constant Wooing
It

much

member

asked

accountancy, industrial
management and the like,

your own,

per

greater> jn my opinion."
1.°

lie understanding and acceptance?
Let us look first at the older pro*
fessions, law and medicine, and
then the newer professions, like

his ag¬

but

less

income

gregate
6lce„vc

fees

his

over,

would

client

stated,

investment

willing to

were

"if
counsel
out rather

Finally,

average

there lessons
benefit in the
professions as
to attain pub-

Two

holding securities. These
he felt simply showed a desire to
be exclusive without offering any

2f»n-

this point doubted that the gen

America

scope

your

ened

broad-

criteria should be

counsel of integrity and skill.

the

that

Your code of

formed in 1937.

was

ethics

hncinocc

titn acn

Everybody who answered

public.

To improve

Association

advice

vestment

professional status, the Investment
counsel

—

member

soHcU® new dltton

way

Likewise, he felt mem-

bershio

real

naimen

counsel, whose business
of advice on

Next, what about the organization of the profession, one of Mr.
;

SigniflS"

^on were those

fee basis, and other types of in¬

Organization

Depressional

sees

against

-traotwinwf

r--

—

arbitrarv

Associatl°" 1S ^Ditrary.^ lie sees

is mainly the giving

compel sufficient differentiation
description of financial serv¬
ices. The public has no clear con¬
cept of what "investment coun¬
seling," as legally defined, is.
...

ARRnriatinn

^}f, investing public knew the
difference between qualified investment

nationwide
1

criticisms

some

were

today,

need

th9ugnt *be. general and

But there is still a lack
legal sanctions to

goes.

that opinion was

fundamental value,

your

from your point
is good so far as

up,
law

the

ade¬

matter

the

certain, professional attitudes or
practices which I will touch upon
in a moment, but none questioned

that

quately.
Summing

will

vn.i

important

material, and the con¬
the Federal statute

troversial

occupies

unarilmous tHat your Profession clients.
an

direction due to the commission s
the Commission's
direction,
fpfir Of including
fear of including too much contoo much con

tention

^/^tarn

meeting with the sue-

you are not

counsel

jnvesbnent

this situation unique to your

and the profession?. Or are
classification of those who repre- from which ydu can
sent themselves to be investment experience of other
counselors under these definitions regards the struggle

...

sion to be in. It is also dangerous
for the public you serve.

purpose,

any

Apparently

Act.

Federal

the

confidential

nrnvi«!ion

rpfatinnchin

serve

aue!lSio!L e^heCffrs7Pwase "What his J>°intwy°k r*ay
WiSh
agreed
with
the viewpoint of
* X vnT,thinkQualified po?der' ,He behe^es *he Present Xercategories
to present imPtece do you thmk the quaimea criteria for membership m your omer categories as xo present im-

the

lines

the

along

....

w0uld

iaws

but thinks definitions

—would be helpful. He objects to

$100,000, since the smaller inves-

respondent felt there was too
great -tendency to judge results
this was just a spot check, the entirely by market performance,

^ur Leg-

leeisIatmes

I have said that I elicited some

matters now

He does not feel additional

stand.

law> investing, and business
and financial journalism. Though

your

interests have been introduced

1 did query some leaders in bank-

uni-

Some Criticisms

some

investor—at least

...

fully the essential necessity
Jar to yours obscures the unique of such a survey from your point
distinction inherent in the term of view, as well as give concrete
."investment counsel," and thus examples of how another profesdeprives tthe public of essential sion, medicine,
is carrying out
knowledge necessary to sound de- research and public relations accision.
tivity stemming ttoefrom..H™As ' tostate
statutes,
distinct ever^ as background for this talk,
designations so simi-

erate under

Association. One of the re- ing in a frame of reference in
plies from that sector contained which apathy, distortion and igobservations, which I pass norance of you and your scope
on
for what you may consider and function are predominant facthem worth. He feels the profes- tors. In addition, you are worksion has a broad future but only ing against an uncontrolled comas an adjunct to the activities of petition.
Certainly this is a danthe professional or institutional gerous situation for any profes-

your

and the general feeling was
the, public vwas not much
aware
of the organization or its

ence,

that

Thursday, August 9, 1956

...

(612)

time and effort to selfpreservation in a changing society,
This battle on the part of the
greater

function
clients

mnem^irs?my

emnlovee of "a
iikrmwledges his
^eota^ce ^tlm cod^bv rilnina
acceptance 01 tne coae oy signinto
ft

future," The majority Considered ^
DUe *9 ownern a very bright on6. One reply ship of securities or membership
from the legal field qualified this on boards, related to numerous
investment bankers
ctatina
tiiat
are
closelv
are
closely related to numerous
by statinS that the profession's industries and therefore are in

JVn

firm

member

of it

con

As of today approximately 350
firms and individual practitioners
entitled

are

caU

if' I

®
a iy, F /' Ff a
prof£sslon' Some ot the bankers

profession,

themselves

"Investment»Counsel."

stressed such points as that future

However,

correctly, your
disqualifies: all) but

would

success

understand

association

nmWinn'c

dependent

fn,n„i

^ talent and success of

Ji.

about 70 investment counsel firms
for

membership,

since

one

LJutil

re-

two^ partners

Thus four-fifths of the profession
purrcnllv

ore

irvcliffiKlo

Aeon.

currently ineligible for Assomembership. Of the eligiDie'/u iirms aooui ovyo belong.
gible 70 firms about 67% oeiong.
From a public relations standpoint

are

services

oflered by others' more said that
°ne of an art
since investment is
LIIdn rsc^ ^^W mav be
d aCieilCe, tne IieiO may De

principals.

because

comPefU10n

auirement is that thp firm have at

:feast

2552?

subiert to hoards than othor

XXtccXit

ciation

hazards than othei

Proie?slonsrph/
-

„„CC!f5

thil

Www

nt would

seem you might wish to
-consider seriously whether so^re-:
strictive,

hrnkpn

r-illv

penalties

it,

nor are

who

give

-whom

the

by
the thousands of others

investment

the

public

investment counsel.
the banks and

advice

may

problem

Thlis includes

other financial in-

•

known to the
known to the

public.

•

flfirfc

velop

a means to protect

from

nrnfoccmn^i

pr?f®ssional

Third, just what is the

current

«iauwu

public mind.

•

invpRtmpnt

unless

the

unethical

.matter» df qualified advisers,
J sparsely , igiation is bound
Membership
Membership.

against
against non-membership conse-

Aiipnt.lv

He raised the point

bankers felt that

The very existence of
_iic

the

Dro-

other
Gther

UUUuu

bar
banker

necessary
..

ferentiate

felt

the puband

un-

additional legW
nilto uumc. Ancome.
laws

some

between

dif-

investment

. counselor and other financial advisers.

and

this point could only be adequate-

whom

won't

take

9C"

From all this we can make one
major- emphasis': hence- basie;deduction. Investment counforth.- &
*
, t - * «gi n^sfeAdin^tmsocretv and at^
set must adjust to society and atIn
addition/'to. these
queries tempt to ddjust society to them-

receive

various fields,
ot <dic-r
profession
Large industrial companies are had achieved mention therein, for
reluctant to give information to dictionary definition is a reflec-

counts'

under

investment
use

$400,000,

individualized

terest

and

counsel

can

give

service.

because

(3)

they

basis for letters and

re-

arising from stock holding

underwriting,

this

contact

stated that some investment bank¬
ers

make

practice

not

supervise any client investments
m companies in which their partners afe on the board, nor do they
recomiT16nd ariy securities they

your

curities

made only after the
underwriting period has ended.

Association and non-member

are

Naturally, I do not expect

you

D—
- —
—
to agree with all of the opinions

might be ~
T

states

thinking regarding:
The final question was as to
."yotir profession in the fields on whether my correspondents dis; which
it impinges?
Obviously,-tinguished' between members of
concept

clients. Investment bankers,

some

fession, together with the banks are in the act of underwriting;
and investment dealers, can de- recommendations as to those se-

lhA

hand

establish qualifications. One of the

other

as .who would
license and who would

f/nHUptl0fhp QFrCht are per.mitted
H to render investmept advice and to
designate
themselves.

house executive said he didn't see
how more laws would solve the

and

regard

many

among leaders in
Ir made a quick

tionaries to

tion
a*"Our

survey.

Later

fession

such

adjustment within
of a democratic

framework

society

"
have

-----just cited; you

-probably

have heard them all before. Nev-

"investment

term

listed.

what

This
I

counsel.

Most

the

none

they

can

build their pro—i~is~

j—

securely on public under-

When

clear-cut definition of

areas

counsel"

in law, conflict often results,

-For

of these war
indication

mean

igno-

example,- psychiatrists/-i arid

psvchologists in many; states, are
battling each other. Psychologists
are
often confounded with vocational counselors,

Going back for
„

moment to

There

selors.

marriage coun-

is conflict between

and tax accountants, beoptometrists, oculists and

lawyers
tween

rance.

between builders and
spot check of leadership opinion; architects, registered nurses, praclimited as it was, it still indicates tical nurses and even children's
that

tiate
ani

my
.

the public does not differenbetween

investment

visers,

nor

between

managers

does

qualified

opticians,
,

nurses.

counsel
or

„

some

cases! because

profes-

ad- -sion has not defined itself to the

differentiate
members
of

public or been defined by law,
legal sanctions may hamper it,

who have signed due to public misunderstanding, f
eligible members 'I When, however, the public, un.
,
:
derstands the scope and functions

your organization

the

code

and

who have not;

ertheless, I think they are worth
Certain elements in the financiting, if only to show some of cial world are friendly to you;
the facets of conflicting opinion some are inimical. As to legal rein
your
path towards meeting lations, apparently the SEC regulation has little meaning in proyour objectives.
In addition to querying bankers,
tecting you or your identity.
f
There
should -1 be
lawyers, investment houses and
widespread
editors, I asked the same ques- public understanding and knowl-''

.were ,negative, :^ornq: re-^^tibqs^of aTew, invps^mqnt .cou^eL^edgq q^
:spohdfehtt obviously' were un-'flrihs whieb are'non'-meritbers of regards

careful
careful. replies

will :diScuss

achieve
the

If they

^circumstances.

petitive

term,

usage

the

investment

and

the victims of fortuitous or com¬

office copy of Webster's

dictionary.

.after

extensive

selves, if they are not to become

-chtdk

if your

see

public

own

.ly and comprehensively answered
an

special publics

ports on specific companies to .New World Dictionary of the standing, knowledge and support.
^ imPress thf lr clients. Investment American Language, published in They can ensure their continua¬
bankers do not do that (4) Since 1953, has( no mention of invest-;-tion and growth.

ins bef°Te a commission for an
and written examination. Op

bound

not

are

for effective service

too

large
and have too

are

anJex^ra. leverage^demed to looked in four or five dictionaries
shrndd he iwSainS hZ
;nd.ePendent investment counsel, ajld also in a legal dictionary that
ihJmsure sound corporate action. he told us was four years old,
As to the argument of self-inand also in a business-commercial
a?Pea„r;

Xvi mpmoial

counsel

firms

Lifthere

,rally the 303 non—member invest—
ment

ment counsel

ac- New York Public Library in for- professional-scope andfunctionis
XX ^°Unt m sPeci^c companies, they mation service. The official there lacking,neither in public opinion

thp

a better position to secure mside
curred in other professional'fields,
information.
(2) Many invest- u was^eirthafcrtiiis policy should

called up the

standards.
no

:~.c

JthStwic iffL XT am0"n!:s of stock for their

membership requireattaining-your
-objective of speaking for the profession as a, whole and raising its
a

:ment is not a.bar to

Your code carries

of ctoneL foTevery kind k
port< It is a never ending campaign 0f education, enlightenment
an-i
membership, and that these should and public information, directed
be gradually ratted, as;ha*.XK>.
.bothV the broad public and to

Essential there should be adequate
standards of competence set up on
which to judge that
applicants for
mpmhprchin
shnnlri

needed profession, its devel-

its continued existare\assured and the neceslegal sahctions are attainable,

opment\and
ence

sary

Some may ask why the well
established firms. Should work to
build up the profession generally,
since the most immediate' gainers

w^at, you dq, ;rnstead, as yyouM a,ppeqr;tabe their competithe public, you are work- tors. Tljie answer td that is Simply

Volume 184

Number 5558

The Commercial and Financial Chronicle

...

(613)
that,

the

long term, what
helps all and what hurts

over

helps

one

hurts

one

always

all.

The

leaders

particularly

tack when uniformed
ion

decides

make

for

scapegoat,

any

was

the

The

few

is,

when

the

public
of

court

last

•'■■■//• //''/v-/'./

hampering
graphically

larly alive to the dangers of inaction in the public relations field,
Let me cite a few of its activities

unethical

pro-

firms

indication

activities

profession

smeared

tensify

what

leading

and does do tp

can

favorable

attitudes,
over Jthose on the fence, and
bat negative public opinion,

all were put

out of business together for some years
"United
we stand, divided we fall
may
be a trite saying, but it is aiways

inwin

corn-

public

says

(2) as regards the legal
fession itself,

larger firms reasonably hope
create'a climate of opinion
which

risks

various

minimize
now

such

ing

and misconceptions by the
public.
One poll indicated that

quirements, with all the attendant most of the people questioned
onerous detail; the application of
thought it wrong for a lawyer to
"blue sky" laws; the necessity of defend an accused person
prob-j
meeting state requirements vary- ably guilty of a crime. Yet right
ing from state to state; the dif- of counsel for every accused perficulties stemming from outside son is a cardinal principle of our

standard

setting

compe-. society.
I To meet

tence.

profession

Bacon in "Maxims of the Law"

profession, from the which

men

do of

course

of duty to endeavor
themselves, by way of amends, to.
be a help and ornament thereunto "
-V-?">■/
/ '
ZX"
Public Understanding Must Be
,

Developed 5

speed up liti-

gation through pre-trial confer-

profit, so

they

ought

objections, the
trying to remove

simplify issues and

seek to re-

and

ceive countenance

of"

lawyers

money,
thou¬

devote

their

public

re¬

The

ABA

effort

making

establish

uniform

code

current

every

state

disciplinary

procedures for the profession.
If
the profession sets itself "to im¬
prove the profession from
within,"
Mr.

says

Gambrell, "to raise

standards
;

education

practice,

services

our

and

our

and

self-

outward

our

as¬

public relations will

our

automatically improve too."
Spiro, director of
activities of the ABA, in a letter
to me, wrote, "Our
public rela¬
has

program

toward

bar.

been

directed

protecting
the
public
than toward
defending the

Our information services

designed to afford the protec¬
knowledge brings." This
is equally appropriate for other
professions.
are

tion that

ABA

authorized

Committee
Practices

Un¬

brings

public
notice
instances
of
the
practice of law by unauthorized
individuals.
tice

Also, since such prac¬
indulged
in

sometimes

of principles
have been
formulated and circulated by the
ABA with respect to the practice
of law,

which

serve

guides to

ehminp+e inadvertent trespass
the field.
as

you can

from this

see

sum¬

mary, even one of the oldest and
most respected professions real¬

employ lawyers,

izes the

To combat misconceptions

and

to explain its work, the legal profession, through its bat "assoda*
tions,

self,
and

carries

educational

attitudes, converting on-the-fence
opinion to favorable attitudes, and
or
blanketing negative

negating

attitudes.

■

ing and support for your concept
of. professional investment coun¬
selling, and .(b) on legal sanc¬
tions to safeguard for the public
your professional status.
These conditions

can be brought
only by your Association
thejr .teformation activities. Law- assuming dynamic leadership in
tnemseives.
vers
are
learning the difference building public understanding and
(2) Society does not move, at- between public relations and mere support for your profession.
the same rate of speed m all its.
publicity, Mr. Gambrell says,
your
Presumably,
objectives
parts. All professions that serve
The
association
has
set
uo will fall into
immediate, imtermethe public interest are not treated gDeakerg» bureaus.
Able lawyers diate and long-time
periods. And
alike by the public.
sneak
before
laymen's
grouos, because you are dealing with a
(3) Technological specialization Brochures listing available soeak- population continually changing,
has rapidlv increased the number ers, topics and the like are dis- your program will
carry on con¬

about

what

tributed. The American Bar Asso- tinually, as in the case of other
riation is presently, forming a na- professions,
c:;':
c:
"
:
tjonai sneakers' panel to provide
7? Needed .Steps
nationally promient lawyers and
-

judges ; as speakers at national
meetings otJeading fraternal, bro.

fessional and trade organizations,

Several films produced Hbv the

behind it

profession such as".
yours the professional association
can serve
vital pur-,
in

new

,"particular],i

than

the

old,

Pne° dsSansymneeas a.sy™

ABA and state bar associations
jhow what lawyers do and how

SS"

i„dgp<?

identified w the
with the status val-

mind

nublir

Sl^icatoconcepts
seeks

lession
fesfon

w
to

and

project
j
-

association

does,

«LandIords

have

been

tau<*ht by
pubiic forums

and

Acci-

Tenants,"

distributed,

sure

indicated to .en¬
survival and growths i

i First, you must strengthen your
Association and build your mem¬

bership so that you include the
largest number possible of those
eligible for membership.
you

define

must

and

keep defining to your publics the
scope and functions of your pro¬
fession, and what membershio in

classes
law for

tect the

decide
laws.

lavmen

•

the

judges and

dif¬

you.

believe additional
are

needed to

pro¬

public and vou, you must
the specific program of
;

of the

This

„

continued exist¬

your

should

broad-

effort, scientifically carried

out.

program

the

tient before

know

through

it,

must

have

you

enu-

media

diagnosis. .After the

diagnosis has been made, the

pre-

scription will follow. In short, the
research, findings
must be
the
basis

which

construct

realistic program of education and

Fifth,

decide
a

•

year,

gross

$29 billion.

For comparative purthe gross national product
of the United Statef at $391 bil—
lion'in 1955 was 8.4% over 1954,
and for the current year an imposes,

provement of \Vz°/o is forecast,
While the primary emphasis of
the

Fund

research
over-all

your

blitzkrieg,*

help

strategy—•
attack, or

frontal

will

Canada,

resources

34%

its

outside

invested

Canada and

the United States. As

non-resident-owned

investment

company incorporated, in Canada,
the Fund pays no United States
,

income taxes.

capital

Fund's

your

anticipated for the
which would mean
national product of over

current

In Canada there is

gains

income

tax

mum

and

maxi-

tax of 15%.

Mr.

the

and

from interest

dividends is subject to

;

Brunie,

Chairman of the
Board of * the Management ComSixth, the research findings will pany which acts as Investment
help to determine the appeals to Adviser to the Fund, is President
make your profession meaningful of Empire Trust
Company, New
to the public. These will be dif- York City. Mr.
Erpf, President of
ferent for different groups.
the Management Company and of
Seventh, your Association must the Fund, is a partner of Carl M.

w*13**
•

^?,eb» -Rhodes & Co., New York
Frederick Roe,

the

director of

Fund, is a partner of Stein,
Farnham, Chicago, who are

Roe &

gram.

Eighth, prior to launching activyour organization, with such
professional aid as it may select,

ities,

should

draw up

in the Manage~
ment ^omPany-

Carriers & General

a plan.
This will
time,
manpower
and n*'1;\
;
money.
Though flexible to meet * ollcirCS IvCclCll
V
changing conditions, it should be
.
'
specific as to contacts with the
All- | mip
conserve

I[j«||

communications

media, :speaking
engagements, preparation of
magazine articles, etc. In short, it
should

blueprint of methods
your
ideas
through
spoken, printed and visual media
in every combination.
•
.
i
to

convey

The blueprint should

the

cover

three phases of your program:
m

Artivitv aimpd

feii'n

to eet i

/n\

vnnr

nrn-

adiuTto

the

it to adjust to the

mihi??•'

•*'

Net

asset

definition

professions

your

and function;

seope

Activity

(3)
public

the company's 27 years, according
to its semi-annual report for the
six months ended June 30, 1956.
Total net assets ro6e to $18,344,111
at the end of the period C0Vered

public and
This

from

secure

from

$27.06

same

the

;

Capital Fund

a«set

value

report-sent

Af June

for

value

pe-

$29.36

30,

1956,

rose

the

over

Carriers

stocks of 51

common

4.14%, and cash, etc., for 2.8%.
petroleum industry consti¬

The

than

„r

New

York

Manntrpmpnt

20%

utilities

representing
of

were

net

Public

assets.

-second

and

paper

third

v,^

of 19^6
-JTrf
k!
managemaijt believes to be
+

stockholders

r'nnitni

asset

corporations, eight preferred stock
issues and two corporate bond issues/ The " common
stocks - ac¬

by
Henry C. Brunie, Chairman of the
York

also

reporting

tuted the largest industrial group

Capital Fund of Canada, Ltd. rose
to $31.87 per share as of June 30,
1956, according to the semi-annual

New

investment,

Up 44%

The

were

counted for 88.94% of total assets,
"the preferred for 4.12%, the bonds

Of Canada Share'

.Net

Per

General held

should help to
ensure your growth and
development in the public interest.

Value

total of

1955.

period,

program

N. Y.

high for

new

needed

I;; protecting

you.

riod.

for- the

sanctions

•

aimed

supoort

legal

common

stock of Carriers & General Corporation, a closed-end investment
company managed by Calvin Bullock, reached a new high for the
end of any reporting period in

by the report,

value of the

;(2) Activity aimed at the pub- $17,051,975 on Dec. 31,
,1C'.
terms of information and june 30 total net assets

ations. They included 1,00(Vshares

Company
Armand G.
well

Fund

ment

Company.

to carry

You must try through research
boldly to come out-forth in the villain's role in stage,.
to obtain con- screen, television and radio pres- to find your place in the broad
social
scheme
of
structive
legislation - and
build entMions.
v
a■ •
America,
and
•i public, understanding and; support. >
These and -other -activities are then plan to bring about top ad¬

with

say

the

Fund

94^ Qfi7

the

Manage-

Net, asset
of

with

that

886 299

Net

share
of the

asset
as

value

$33.63

business? ** ^ COmmenced
report

shows

.lm

nnn

'?nnn
n^n
2,000 Royal

Mead

Tnharrn

'
a
Dutch Petroleum. Eliminations included Chi-

fld0<?PnifainchOenHaSsonC

per

company's report to stock-

semi-annual

RpvnniH«

of July 27, 1956, the date

$23.35 per share on Aug. 24, 1954,

The

was

hoiders, represents an increase of
44% over the net asset value of

value

date

attitudes of

scale

dogs lie than

provement

viewpoints to overcome, etc.
No physician prescribes for a
pa-

research

ence.

should

you

really

can

pendent for

bad

you

Uve

the publics on whom you are de¬

social effects that stem from a too
frequent and almost exclusive

Very often men in a profession
•feel it is sounder to let sleeping. tvoing of lawyers,
_

you

industry

will

Fourth, you will need
out

being carried out.
points out to the

most likely
to reach your
publics, ideas j most
likely to appeal, hostile or nega-

The ass0ciation

entertainment

public

be like

legal sanctions

lawyer volunteers,
on

the

Third, if

be-

are

campaign,

ferentiate between your members
and those who use euphemisms to
appear to

often

and COurthouse tours for students
are

profession-wide support

be created.

Automobile

Adult education

support it can attain. For the wetof the profession it is vital
that
such
aggressive leadership
such

Ptc.

jn(?

fare

exist

banks,: governmental bodies,
business institutions and schools,

sagacity of policy makers and
the degree of profession-wide

and

Ose

d^nt „

fact, assume this leadership
role depends both on the drive
on

sociattons.^ such as "What to Do
Millions of conies of

and

pamnhlets,

the

But

merated above. Only then can you

are

organization means for their
protection. As a result of such a

the

association.

Whether

discuss

I
a

counsel.

list.

approach to your prob-

determine

your

symbol for all this is the.profes
sional

lawvers

^ towyere^Jo discuss

proniems.

and .tad-

public consciousne

Eight steps

Second,

bol which can be

off

what medium to say
know all the factors

That
profession
prospers
beat which has the greatest sane♦iori" of
oublic opinion and law

rattle

lem, before

'(4)

for«investment

scientific

its flourishing

pace, according to
the report.
The gross national
product of Canada in 1955 at $26.8
billion was 10% above the 1954
volume.
A similar rate of im-

the media you should use to
build good will and
public sup-

contmuejo adjust and interpret

professions throughout society,with consequent overlapping of
activity and confusion in the pub-1
lie mind.
.
/
-

The Canadian
economy continues

now

port

industries represented were:
metals and mining 18.81%, oil and
gas 17.55%, public utilities 13.63%,
food and merchandising 10.87%,
and paper 9.55%.

;

example it has been suggested that I enumerate here and

and money to carry oilt your pro¬

education and information.

vof

„■>

For

necessity for defining it¬
up
misconceptions organize its public relations effort
in terms of sufficient
manpower
cultivating good will through

ac-

r®«eUo"s

the in-

favorable

present

;

clearing

| If this is necessary for an old
Therefore, it is a prime duty of tivities "in nhe" public relations "professidh, it' is everi ihore' im¬
portant for a new profession, your
professional association to carry field. The American Bdf^Associaon activity that will create public
tion says Mr. Gambrell, seeks "to own, which has yet t'O gain wide
understanding
and
acceptance, impress upon every one of the ftjiblic understanding, acceptance
:
;
•
There are several reasons why more
than 225,000 practicing and status.
Survival and growth of your
this is true
;
>"•
lawyers in this country that each
profession, then, depends (a) on
(1) Professions, both new and
your creating public understand¬
old, have developed, w it h out
^
.

through lack of understanding of persuasion.
inter-professional relations, state¬

ences. Legal aid offices are set uo
to aid those financially unable to
"

tensifying

could

Mr. James M.

tions

from which to proceed to

ad¬

improve

own

justment between yourselves andf 90% of the Fund's assets
were
society. The research should de- invested in equities and
equivafine areas of
ignorance, distortion, lents, 4% in high-yielding foreign
apathy, and. knowledge^ of your obligations, and about 6% in Capublics. , ;
*
'»" ^'nathair Government- obligations
Unless you know these
areas,
a.ncl cash items. Among the equiyou have no point of departure
Ues and equivalents, the principal
.

lations effort.

ments
valid

the causes of dissatisfactions; for
e*an;Ple». association efforts to

said* "I hold every man a debtor
to his

sands

rather

Some of the criticisms, ag Mr.
Gambrell points out, are based on
truth, such as widespread cornplaint about "the law's delays."
Others arise from misunderstand-

hang over you.
things as legal
action to void the existing confidential
relationship
obtaining
between you and your
clients;
establishment of registration rerefer

pro-

with

because

time and talents to the

pects and

article

will

Mr. uamoren,

discipline, then

recent

opinion polls indicate laymen critworking together to icize the legal profession"
achieve wider public acceptance
(1)
reeards thp adnunistra
for
the
concept
of
investment
;
1 e administra
counselling as a profession can/£™ ^/3?slice>
.

says

which

forward

Smythe Gambrell, President
of the American Bar
Association,

the

carried

mission

•

Only

being

astonishing small outlay of

Tbe legal profession is particu-

the reputable leaders as well, and

true.

all,

resort.

brewing indus-

smaller

especially

after

during the agitation for

hibition.

tion;

reason

vocation

initiate

This

illustrated

try

liable to atpublic opin-

particular

legislation.

This is a dangerous policy. ; Inaction has in it many more
dangers
than lie in
boldly facing a situa-

are

Walker

Kroner

Refractories,

Pacific Northwest Pipeline, StandCalifornia,

Sylvania

Electric Products, Texas

Gulf Sul-

ard

Oil

phur, and Union Oil Co. of California.

Chronicle

The Commercial and Financial

...

(614)
x':'

The following

Indications of Current

latest week
week

Business Activity
Equivalent to—

Crude

Kerosene (bbls.)

NEWS-RECORD:

CONSTRUCTION
*

;

municipal

and

Federal

7,629,000 *

,7,868,006

177^052,000

;

.«/ 28,883,000

481,446,000'-

-178,352,000'

7,790,000

157]055t0(to.

25,779,000% >> 32,000,000
^ 115,936,000
45,457,600

28,369<000

649,606

643,754

4, 568,798

•

■

2
2
2
2
2

coal

$389,798,000

Indicated

;

ASSOCIATION
Month

July

STORE SALES INDEX—FEDERAL
SYSTEM—1947-49 AVERAGE — 100

DEPARTMENT

RESERVE
July 28

Locomotive

-191,410,000

198,388,000

126,489,000

'156,259,000

119,217,000

40,726)000

14,823,000

.'.in

>,030,000

*9,000,000

579,000

104

METAL PRICES

10,925,000

11,295,000

10,391,000

282

274

208

5.179c

$61.36

+$61.36

$57.17

$59.09

•

^ 213

All

tin

York)

(New

36.125c

•

99.250c

97.750c

94.625c

16.000c

15.800c

13.500c

Aug.

at-

92.69

Aug.

102.80

Aug.
——Aug.

106.39

13.500c

35.700c

•

Average corporate
Aaa
.

—

——

—

■

103.47

104.48

102.46

108.34

) 111.44

105.52

106.21

109.97

103.13

103.97

Public

—Aug.

99.52

Group

103.13

Group

MOODY'S
U.

DAILY

YIELD

BOND

102.80
104.83

/y':

105.86

C;
,

Aug.

3.08

3.05

2.91

and

3.54

3.58

Aug.

.—Aug.
————————.—Aug.

-—

MOODY'S COMMODITY INDEX

Aug.

Orders received (tons)—

Unfilled

orders

Reading
»Other

Odd-lot

sales

SPECIALISTS

SECURITIES

—

and

UCTS—DEPT.

3.26

June:

3.83

3.78

3.55

3,67

3.58

3,51

3.46

dealers

(customers'

3.40

413.8

464,529

493,626

418,186

602,944

109.01

108.99

108.87

106.81

281,121

922,843

$49,804,582

1,001,127
$53,593,004

by dealers—

1,294,989

of shares—Total

,062,866

751,229

July 14

6,389

6,099

L,056,477

745,130

790,126

$39,103,645

$40,651,871

-y-'

116.5

127.6
114.2

108.2

106.2

121.5

119.9

1,015,706

4,234

255,380

192,420

255,380

192^420

182,600

6,364

PROD¬

19,993

—

18.525

19,474

151,035

257,523

197,030

154,015

285,057

243,315

38,162,000

74,437,000

73,552,000

54,412,000

91,144,000
120,866,000

67,251,000

78,810,000

93,045,000

327,590,000'*

384,109,000

433,456,000

;

73,667,000

112,7^7,000

•87,033,000

105,628,000

—

125,619,000

—

<—

Stocks

(pounds)

(tons)

30—

June

(tons)

———-

Stocks

105,296

;

(tons)

95,378.,
124,325

135,760

105,461

——

(tons)

125,993

48,230

58,780

42,355

70,958";

33,710

(tons)

Produced

237,998

30-,

June

134,560.000

245,736
123,115

74,363

■

214,803

(tons)
"

'
y. /

47,886

54,242

(running bales)—
Stocks June
30L—

$52,417,020

.July 14

131.9

119.6

Linters

1,009,342

1,330,636

794,360

SEED

(tons)—

June

Meal—

and

Shipped

130,816

„

;

43,900

164,626
y

159.526

76,314

56,724

Shipped
Hull
•

sales

*117.1,^

107.6

(pounds)

Produced

fif'

Short sales

165.1

121.8

—

Cake

$71,834,190

.July 14

other sales

sales

Number

.326,164
1,678,346

July 14

Dollar value

Round-lot

172.5

Oil—

Shipped

July 14

Customers'

mills

June
(pounds)

Hulls—

90.1

125.8

■ ■

v. -

(pounds)

Produced

July 14

,.'/

(pounds) June
Produced (pounds)

purchases)—t

sales

117.4

91.1
♦127.1

119.9

Stocks

STOCK

July 14

short

122.8

Oil—

Shipped

COMMISSION:

Customers'

Consumption

97.2

132.0

(tons)

Refined

■

Number

Dollar value

;

,105.6

97.9

91.1

COMMERCE—Month

(tons)

Stocks

280,062
;

Crushed

405.2

417.1

257,108
281,606

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

107.0

123.1

COTTON

AND

Stocks
Crude

419.8

SEED

Received

3.23

3.64

226,750

119.2
103.2

Cotton Seed—

;

3.24

3.47

COTTON

3.35

3.56
3.51

July 28

Stocks

256,540

Fiber

June

77,710

(1,000-lb. bales)—

;

103,481

.b_

607

Produced

t 584'"- ":'

(a)

—

364

.•123'

(a)

.July 14

127,838

•

129
•

Other

sales

.July 14

Round-lot purchases by dealers—
Number of shares

.July 14

509,960

182~600

352,230

433,030

256~540

y'yi

536,000

VOTAL ROUND-LOT 8TOCK SALES

ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS

FOR

ACCOUNT

Total round-lot

MEMBERS

(SHARES):

Motes,

Other

514,360

317,300

July 14

1,744,040

7,869,010

July 14

2,258,400

8,186,310

FOR

ACCOUNT

Total

sales

Other

1,316,350

1,473,730

170,930

1,336,370
1,618,090

1,327,010

935,580

252,850
1,065,650

1,634,070

1,106,510

1,318,500

343,490

16,900

261,490

26,800

Total sales

237,690

251,960

245,290

278,760

—

580,600

115,220

434,823
•

72,270

DEPT.

286,610

commodities

Farm products
Processed foods

;

490,697

Death

682,369

483,103

508,375

797,589-'

555,373

581,635

PAYMENTS

•

May: ;
'

■

:/....

:?}

81.2 ''

81.9

•

•*- $212,300,000

518

LIFE*

•

c
,

>.566r-,
!-/.

81.5

% 613"

55,900,000
9,600,000

$205,500,000

$187,324,000

'53,600,000
if

50,619,000

9,700,000

9,171,000
36,427,000
76,500,000

41,700,000

•

41,600,000

86,400,000

85.200,000

99,600,000

83,900,000

79,900,000

$505,500,000

—

dividends

$479,500,000

$439,941,000

WEIGHTED

AVERAGE

YIELD

*100

COMMON

615,596

Railroads

(125)

STOCKS—Month

July:,
3.68

—

(25)

3.82

3.63

5.25

incl. Amer. Tel.

5.35

4.77

& Tel..(24)

4.46

4.68

4.34

Utilities ,(not
Banks
(15)

4.25

4.41

3.95

3.05

3.19

2.45

3.87

4.01

3.78

$272,719,052

$272,824,702
6,546,183

$277,625,547

4,177,520
$268,541,532

$266,278,519

$270,814,626

2.605%

2.576%

681,096

July 14

2,449,230

1,789,493

2,087,547

2,303,080

439,180

250,800

352,910

385,220

2,383,959

1,656,373

1,825,985

2,238,576

2,823,139

1,907,173

2,178,895

2,623,796

Insurance

UNITED

114.2

114.1

113.9

110.1

.July 31

90.4

90.8

89.2

87.2

July 31

102.9

102.4

102.1

83.7

81.9

80.4

July 31

121.5

121.4

(10)

(199)

STATES

July

General

GROSS

DEBT

DIRECT

AND

omitted):

balances————

————_

debt

Computed
ZINC

fund

annual

OXIDE

101.9
J

—y.—

GUARANTEED—(000's

Net

July 31

Production

rate.

(BUREAU

6,810,921

2.348'i

MINES)—Month

of June:

81.4

116.7

Shipments
Stocks

fllncludes 968,000 barrels of foreign crude runs,
SBased on new annual capacity of 128,363,000 tons
of Jan. 1, 1956, as against Jan. 1, 1955 basis of
tNumber of orders not reported since introduction
125,828,319 tons.
Monthly Investment Plan.
^Corrected figure.

endowments

Average

..July 31

BENEFIT

Surrender -values

MOODY'S

65,500

All commodities other than farm and foods

figure,

benefits

Total

502,470

73,260

Meats

♦Revised

1,180

2,886

■

324,610

Commodity Group—
All

409

July 14
U.

—

156

3,760
-

38,000

—July 14

■___

INSURANCE—Month

Policy

326,880

July 14

III—I

sales

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49= 100):

374,580

July 14
July 14
—July 14

2,989'
'

■

COMMISSION—

POLICYHOLDERS— INSTITUTE

Disability payments
Annuity payments

281,720

280,500

7,600

391,480

July 14

sales

•y

Industrials

sales

Total sales

Other

1,093,180

307,060

floor—

Total round-lot transactions for account of members—
Total purchases
Short

1,525,140

July 14
the

COMMERCE

LIFE INSURANCE

Matured

July 14
off

purchases

Short

July 14
July 14

initiated

——1

226/:/

30__

Index-of Railway Employment at middle of
.June .(1947-49=100)
r

...

Total sales
transactions

12,152,400

the floor—

purchases

Other

11,680,770

9,363,870

July 14
on

Short sales

Other

8,948,610
v

July 14

sales

Total sales

Other transactions initiated

471,630

•

Ijuly

Short sales
Other

415,260

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
;
July 14

■*

July 14

6ales

TRANSACTIONS

Produced

INTERSTATE

—

Total sales

June

pounds)—

ROUND-LOT

Grabbots,,etc. .(1,000

Stocks
-/ /

sales—

Short sales

103.8

122.4
104.8. y

126.8

recreation

3.51

Produced

EXCHANGE

122.7

97.5

goods and .services).--^.-*-

3.56

REPORTER PRICE INDEX—

AND

DEALERS

•:

110.7

102.6."
'

;

130.4

127.9

107.7

119.7

3.27

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD.
EXCHANGE

107.5

3.17

LOT

111.8

104.8

3.09

119.5

132.2

-104.1 -

120.9

122.6

-i—,L——

.Jit-

care

3.48

249,020

Aug.

110.9
'

■

128.4

3.38

July 28

DRUG

103.8

121.5

111.7 y

3.26

242,240

AVERAGE ==100

1949

95.5

116.7

268,101

(tons) at end of period

OIL, PAINT AND

124.0

107.5
.

102.8-

Footwear

3.34

——July 28

Percentage of activity

124.7

121.4

Men's, and boys'
Women's and girls'

3.42

July 28

———

(tons)

•/ " /

111.3

Medical

NATIONAL PAPERBOARD ASSOCIATION:
Production

114.4

>110.3

109.5

131.4

——;

yf Person al / care,

2.89,

7
7

115.4

111.1

operation
i

3.89
—

1,831

111.0

98.0

107.7
•

—

electricity———.
fuels and fuel oil—

3.60

Rallroad~Group

125.2

•

3.46

Public Utilities Group—
Industrials Group

fish

vegetables-

3.37

Average corporate

7,557

172.6

116.2

113.2

106.74

108.88

3,040

1,867

.112.1

products

—Aug.

L_.

Other apparel

108.70

•

2,686

1(873

and bakery: products—

Household

2,981
3,135

1947-49=100—

—

'L.

Apparel

AVERAGES:

Bonds

S. Government

103.S7
104.66
-a-.'

5,152

3,231

Housefurnishings

101.80

103.97

5,639

5,829
'7.983

3,099

—

INDEX

103.30

101.31

Aug.
Aug.

.y.——————

Group

Utilities

Industrials

12,561
.1,562

Lr.

24,914

1,642

5 903

8,203

loans

$32,471
'

"6,244

1,663

credit

Railroad

and

Solid

108.34

:98.73

loans

Gas

97.78

6,247

•

132.5

108.16

106.92

104.83

14,876

Other foods at hornet——;

94.70

;i__;

'Housing/

12.500c

94.61

28,591

15,077

97.500c

13,500c

J*-/.

$36,574

28,890

home_^.

Cereals

36.675c

93.03

$37,093

—U

Meats, poultry and

MOODY'S BOND PRICES DAILY AVERAGES;
U. 8. Government Bonds

■

14.800c

37.300c

■S r-y

modernization

items

15.000c

--—Aug,
—.——Aug.
Aug.

at————-.—

(East St. Louis)

Zinc

45.525c

36.450c

Aug.

39.300c

39.525c

June:

Fruits

Aug.
—Aug.

Food,

$43.33

$44.83

$49.50

■

Lead (New York)

(St.' Louis)

30:

goods

PRICE

.'Dairy

refinery

Export
Straits

15,923,000

credit

term

—

credit

Food
.

$52.67

June

accounts.——

Month

-v

—

;**■

245,001,000
,

126 *

124

payment

Service

5.174c

65 000

SERIES—Esti-;

loans

CONSUMER

-July 31

15.-224.0e0

294,698.000
's 265,155,000
11.545,000; y
178,poo

credit

' Non-instalment

•;

>•*

QUOTATIONS):

AM. J.

(E.

Electrolytic copper—
Domestic refinery at

Lead

Personal

(per

service

and

Single

,190,000

DUN A
Aug.

lb.)
Pig iron (per gross ton).
Scrap steel (per gross ton)
steel

,14,695,000*

2f0 997,000
12,787,000

RAILROADS—■

credit

consumer

Repairs

..July 31

INC

BRADSTREET,

20,571,000
y

39,000

THE FEDERAL RE-

consumer

V* Other

555,000

-.July 31

—

)

""28,942.00.0

export*,
':

intermediate

and

Instalment

9,601,000

7,300,000,
672,000 -

IRON AGE COMPOSITE PRICES:
Finished

short

millions

ft Total
r

Aug.
INDUSTRIAL)

AND

(COMMERCIAL

installed

GOVERNORS

mated

ELECTRIC

FAILURES

AMERICAN

units

SERVE SYSTEM—REVISED

111,666,000

145,737,000
52,651,000

115,533,000

110,141,000

9,076,000 i

191,204,000

Charge

INSTITUTE:
Electric output (in 000 kwh.)

and

(barrels)—

June:'

*206,600,000

•24",790.000

5,000

24,462,000

(barrels)—'

domestic

227.236,000

225,625^500*
'

•

EDISON

consumption

Increase all stocks

250,454,000

—

'(barrels ?■'

y •

$317,693,000

240,637,000

190,237,000 '

581,000

.July 28

(tons)

Pennsylvania anthracite

,-r/Refined products.-imports

649,347

$396,896,000

$309,454,000

COAL OUTPUT (U.
Bituminous

gasoline - output (barrels)
■7,
Benzol- output (barrels)——
•
>
Crude oil imports
(barrels)—.

Automobile

S. BUREAU OF MINES):
and lignite (tons)

12,052

< barrels )_L—: 214,386,000'
23,102,000
;

Domestic, crude oil output

;

131,128

14,112

INSTITUTE—Month.

Natural

790,426

755,292

648,492

581,238 <

144,726

237,543,000'

2,217,000
11,008,000

7,962,000

150,800

of May"

end

- >' \y- 'V- £.*■ * ><'y- •. •. y
production (barrels of 42 gal--

April:

Total domestic

:
_

> •

Ago

CONSUMER CREDIT OUTSTANDING—BOARD

—Aug.
Aug.
Aug.
Aug.;
Aug.

construction

State

;

2,125,000
12,358,000

' y 2,063,000~
12,760,000

2,200,000
12,632,000

Month

11,898

May

: 26,447,000

ENGINEERING

—

construction

Public

*.
27*

*
*
——_Juiy 28

construction

Private

received from connections (no. of cars)—July 28

ENGINEERING

Total

freight loaded (number of cars)

Revenue

Revenue freight

CIVIL

—

RAILROADS:"

ASSOCIATION OF AMERICAN

7,577,000

8,144,000 *

27,482,000

1: 26,954,000

Year ~y

.—-j-—July 27^ i' 113,600,000- 4 !*108,734;000 f/ 93,672,000
July 27 H l-'43,l68,D00 2, f42/164,000 "I J 38,374,000

—:

Residual fuel oil (bbls.) at

§7,990,000
27,474,000

*!u, HZf

—:——.

Distillate fuel oil (bbls. )■ at

7,110,800
8,076,000

7,085,800

July 27
July 27

July
(bbls.)——
,———-—
July
Kerosene output (bbls.),—.
.
,———Distillate fuel oil output (bbls.).
__J
-—July
Residual fuel oil output (bbls.).———T
July
Stocks at refineries, bulk terminals, in transit, In- pipe lines^
Finished and unfinished gasoline,(bbls.)-at———
July
output

: 6,615,500

7,034,350

(short tons)

PETROLEUM

AMERICAN

output—daily average (bbls. of

aluminum in the U. S.

tonsi—Month

short

(in

2,157,000

317,000

of that dates

are as

Month

Production of primary

•415,000

(BUREAU OF MINES):

ALUMINUM

89.4

12.9

ne.9

Stocks of aluminum

gallons each)
—--runs to stills—daily average <bbls.)_.

Ago

-y

§1,290,000

.Aug. 12

Crude

Gasoline

Ago

of quotations,

cases

either for the

are

Latest

INSTITUTE^

condensate

and

castings (net tons)

Steel ingots and

AMERICAN PETROLEUM

or,

Year

Week

§52.4

.Aug. 12

that date,

production and other figures for the v

cover

Dates shown in first column

month available.»

month ended
Month

Week

AND STEEL INSTITUTE:
operations (percent of capacity).

IRON

Indicated steel

statistical tabulations

Latest

AMERICAN

Thursday, August 9, 1956

(short tons)
(short
end

9,196

(short

tons)

•8,284

13,251

9,316

*11,076

17,171

16,009

—

tons)
Month

•16,129

11,828

^Decrease
(a)Not

all

shown

stocks
to

(barrels).

avoid

disclosure

for

individual

companies.

Volume 184

Number 5558.%

The Commercial and Financial Chronicle'

(615)

Universal -Match Corp. has $6.5
debentures
ready
for
if
conditions are right,
and bankers Will be
bringing out
market

$36,454,000
Toronto
Two

of; Metropolitan

bonds

offerings',

about

midweek.

BRIDGEPORT, Conn.

million

—

The

Something

approaching

revdit

the part of potential
corporate

payable

NOTICES

debentures

borrowers against prevailing con¬
ditions in the new capital market

developed this week. Several
look

the

situation

took

and

de¬

Corporation,

*>-■

yv V- y

>-;y;

(Special to The Financial Chronicle)

once-postponed

eral

stockholders

looking

market

•

the

notices

the

over

Michigan Wis¬
Co. ? rejected

preferred

„

EARLE

•

record

one

Preferred jStock

the.

of-'this

Now

for

set

33 Pine

decided

$40

million

quarterly

bond

business

Presumably prospective buyers
looking ahead at the calendar
•which
is
building up for the
weeks

ahead.

ideas

own

and

feel quite certain they
the "driver's seat" so to

are

six

have their

price

speak.

•<

C.I.T.
The

;Corp. to postpone its prospective
financing a second time raises the
;qHestion of what will be the
thinking of three other large firms
,

in the field which have big

the

back

issues

the

•it:',

;■;

issues

month.

the

registration

,•

•%:!.* ;

General

through

headed for

prospective

regular quarterly dividend of fifty cents
(50o) per share on the issued and outstanding
common stock, $10 par value, of this Com¬
pany

•

V'v

v,'

A regular quarterly divi¬
dend of 50 cents per share

1950 to shareholders of record at the close of

regular

declared

Directors

DAYTON, OHIO

•

dividend of "eighty-one

A regular quarterly

;

DIVIDEND

4.08% PREFERRED

Bank

cents

($1.02)

Cumulative
$100

per

Convertible

record

the

being,
their expansion plans.

close of business

make such

the

move

standpoint

dend

Peterson,

V-

; •

*•

••

BERLIN,

straw-in-the-wind, Alpha
Cement
Co., has
an¬
nounced
it
will
use
long-term

Company

declared

payable

holders of record at the close
of business

August 10, 1956*
SKOWBO

finance

new

officially
of about

will involve
$15 million.
Next

payable

recent

issue

are

Tuesday.

due

And

-V"

;

•

...

pany today declared a cash divi¬
dend of Fifty Cents (50(f) a share
on

the

(incorporated

the

50 cents

per

;

jersey)

1956.

capital stock of
share

This

payable
1956,

ness

Treasurer

the

August 13,

Dividend Notice

July 25, 1956

The Board of Directors of
Air

declared

Corporation

has been declared

15,

Inc.

Lines,

payable

capital

1956, to.

close of business

August

31, 1956.

Security

Vice President and Secretary

record

per

stock

the

payable Septem¬

to
at

stockholders

the

•

Amount
per

Preferred Stock,

5.50% First Preferred Scries.. .$137J4
Preferred Stock, 5.00% Series
$135
Preferred Stock, 4.75% Convertible Series..... .$1.18%
Preferred Stock,

430% Convertible Series

$1.12%
.$035

Common Stock

p-e_T

business August 15.

^Secretary

C. Allan Fee,

company,

ber

quarterly divi¬

of 30c

dend
the

Company has declared

the following
quarterly dividends, all payable on
September 1, 1956, to stockholders of record at close of
business August 6, 1956:

has

Delta Air Lines, Inc.
General Offices: Atlanta,

TEXAS

EASTERN

/^ta*i4*n&t460TZ'

Ga.
SHREVEPORT,

August 2, 1956

busi¬

1956.

30 Rockefeller Plaza, New York 20, N. Y.

•y

Common andPreferred

Delta

11,

stockholders

to
at

September

common

August

dividend

September

Augusf 7,1956

new

has declared

Cash Dividend

paid September 26,
business

record

$1.00 per*

The Board of Directors

capital stpek. This cash divi¬

August

STANDARD OIL COMPANY

com¬

The Board of Directors of the

developments the

watched closely.

5, 1956.

CommoHt Dividend No. 147

September

only large corporate issue
due up next week is Consumers
Power Co.'s $40 million of bonds.
that

and Treasurer

to l

stockholders of record at

The

Bids for
be opened

Vice President

CASH DIVIDEND No. 36

un¬

Week

139,h DIVIDEND DECLARATION
The Board of Directors of this

1956 to stockholders of record at

15, .1956.-

A dividend of

17,

; M. W. URQUHART,

Corporation has

declared

stock of this

outlay

stock¬

August

stock

con¬

struction which it is estimated

view

Senior

loans

payable
to

€sso

OF PITTSBURGH, PA.

the $50.00 par

close of business

record

1956

FIRE INSURANCE

dend will be

Septemf®^l, 1956,

'i NATIONAL UNION

Pipe

stockholders of record at

Portland

bank

this

10,

the Com¬

Stock of this

A'A

been

capital stock

Paper*

ond

Pulp*

been

preferred

divi¬

PRODUCTS

FOREST

Towels—Bermico

September 1, 1956 to stock¬

vertible

the

Corporation,

August 1, 1956

COMPANY

has

Full text of Commercial and Financial Chronicle : August 9, 1956, Vol. 184, No. 5558

FRASER